After printing a "shooting star" candlestick on the daily chart on Tuesday, yesterday saw gold make a lower high and form a "doji" candlestick, confirming the indecision in the market and the likelihood of a local top being put in place this week.
Gold is struggling to break above major resistance at the 65 week MA and the long term down trend channel - if the price cannot close above 1325 this week, the danger of a more significant reversal increases substantially.
The dollar remains weak and is still trading around 80, though the decline has halted at this support level. Equities remain at all time highs and the bullish trend continues, whilst oil has dropped off a little and is trading around $104 a barrel.
Support can be found at 1318-1322, 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - the break below 1250 seems to have been
invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1325-1326, 1330-1333, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
Gold is struggling to break above major resistance at the 65 week MA and the long term down trend channel - if the price cannot close above 1325 this week, the danger of a more significant reversal increases substantially.
The dollar remains weak and is still trading around 80, though the decline has halted at this support level. Equities remain at all time highs and the bullish trend continues, whilst oil has dropped off a little and is trading around $104 a barrel.
Support can be found at 1318-1322, 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - the break below 1250 seems to have been
invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1325-1326, 1330-1333, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.