With the dollar tumbling below 80 on Friday and oil surging due to the problems in Ukraine and equities sharply lower this morning, the stage is set for gold to advance further in Wave 3 of the new rally leg.
The recent consolidation has worked off the overbought condition of the market on the short term timescale, with the reliable 200 hour MA providing support again.
Support can be found at 1340, 1330-1332, 1322, 1312-1315, 1307, 1295-1300, 1280, 1275, 1250-1255, 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, though this is looking increasingly unlikely.
Resistance can be found at 1350, 1360, 1377-1380, 1395-1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent consolidation in more detail and our strategy for our next trade.