Gold fell sharply on Friday as the dollar rally continued and equities roared higher. The market made a low at 1306 and closed near the lows for the week, printing a "bearish engulfing" candlestick pattern on the weekly chart.
This pattern is usually a reliable reversal indicator that suggests that the price will fall for the next few weeks and we would not be surprised to see a return to 1250, particularly if the dollar continues to find buyers.
The oil price is plunging and is now below $95 a barrel, suggesting that inflation is not a concern or expected in the foreseeable future.
Support can be found at 1310, 1300-1306, 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 1318, 1328-1330, 1338-1342, 1352-1355, 1360, 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 action and the "bearish engulfing" candlestick pattern in more detail, as well as our strategy for our current short position.
This pattern is usually a reliable reversal indicator that suggests that the price will fall for the next few weeks and we would not be surprised to see a return to 1250, particularly if the dollar continues to find buyers.
The oil price is plunging and is now below $95 a barrel, suggesting that inflation is not a concern or expected in the foreseeable future.
Support can be found at 1310, 1300-1306, 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 1318, 1328-1330, 1338-1342, 1352-1355, 1360, 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 action and the "bearish engulfing" candlestick pattern in more detail, as well as our strategy for our current short position.