Gold drifted higher yesterday, hitting a high of 1361 before backing off to close at around 1353. The market appears to have formed a "rising bearish wedge" pattern which is in the process of breaking down.
If this analysis is correct, the market is just beginning a correction - the severity of this correction will guide us with regard to the "bigger picture" in gold and the favoured Elliot Wave scenario that is unfolding.
The markets are awaiting the October FOMC meeting tomorrow, with the prospect of tapering fading rapidly and now far more likely in March than December, however any indication that tapering is still being considered in a serious way before year end will have bearish consequences for gold and be bullish for the dollar.
Equities continue their march higher and the dollar has found support around 79 - these are both bearish factors for gold.
Support can be found at 1338-1342, 1328-1330, 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1352-1355, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in detail and our thoughts for our next trade.
If this analysis is correct, the market is just beginning a correction - the severity of this correction will guide us with regard to the "bigger picture" in gold and the favoured Elliot Wave scenario that is unfolding.
The markets are awaiting the October FOMC meeting tomorrow, with the prospect of tapering fading rapidly and now far more likely in March than December, however any indication that tapering is still being considered in a serious way before year end will have bearish consequences for gold and be bullish for the dollar.
Equities continue their march higher and the dollar has found support around 79 - these are both bearish factors for gold.
Support can be found at 1338-1342, 1328-1330, 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1352-1355, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in detail and our thoughts for our next trade.