Gold remained unmoved by the Fed's announcement of another cut in Quantitative Easing yesterday, instead finding support from the continuing weakness in equities. The gains were however capped by dollar strength in the aftermath of the announcement.
Gold is still attempting to break out of the down trend channel though this morning's price action intrdocues the possilibity of a "lower high" and an end to the rally - a break of 1250 will confirm this, though a move above 1280 will revive and extend the rally.
It will be interesting to see how gold reacts to further dollar strength and a bounce in stocks, this will give an indication of the underlying strength in the gold market, which to date has not been apparent.
Support can be found at 1250-1255, 1237-1240, 1220-1225, 1214, 1210, 1200, 1188-1190 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1268-1272, 1277-1280 and 1291-1295. Holding support at 1250 and a subsequent break above 1279 would suggest an end to the intermediate term down trend, though it would take a close above 1300 to confirm a more significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
Gold is still attempting to break out of the down trend channel though this morning's price action intrdocues the possilibity of a "lower high" and an end to the rally - a break of 1250 will confirm this, though a move above 1280 will revive and extend the rally.
It will be interesting to see how gold reacts to further dollar strength and a bounce in stocks, this will give an indication of the underlying strength in the gold market, which to date has not been apparent.
Support can be found at 1250-1255, 1237-1240, 1220-1225, 1214, 1210, 1200, 1188-1190 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1268-1272, 1277-1280 and 1291-1295. Holding support at 1250 and a subsequent break above 1279 would suggest an end to the intermediate term down trend, though it would take a close above 1300 to confirm a more significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.