Gold had a generally quiet day of trading yesterday, with a flurry of activity following the release of a weaker than expected ADP employment number that saw gold surge higher, finding resistance at 1275 before retracing the move entirely in a very short period of time.
The economic news recently from the US has been rather weak, though any "knee jerk" rallies in gold are being pounced on by traders looking to exit longs or open new short positions and as such, the yellow metal has been unable to break higher.
This pattern suggests the bears are still in command, with lower prices likely in coming weeks. Only a break of 1300 will see the bears retreat and see shorts start to cover in significant numbers.
The dollar remains well supported above 81 - any rally from here would see gold under strong pressure.
Support can be found at 1250-1255, 1237-1240, 1220-1225, 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 1266, 1270-1272, 1275-1280 and 1291-1295. Holding support at 1250 and a subsequent break above 1279 would suggest an end to the intermediate term down trend, though as we mentioned above it would take a close above 1300 to confirm a more significant rally was developing.
Today's video for subscribers looks at yesterday's trading in more detail and our strategy for our next trade.
The economic news recently from the US has been rather weak, though any "knee jerk" rallies in gold are being pounced on by traders looking to exit longs or open new short positions and as such, the yellow metal has been unable to break higher.
This pattern suggests the bears are still in command, with lower prices likely in coming weeks. Only a break of 1300 will see the bears retreat and see shorts start to cover in significant numbers.
The dollar remains well supported above 81 - any rally from here would see gold under strong pressure.
Support can be found at 1250-1255, 1237-1240, 1220-1225, 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 1266, 1270-1272, 1275-1280 and 1291-1295. Holding support at 1250 and a subsequent break above 1279 would suggest an end to the intermediate term down trend, though as we mentioned above it would take a close above 1300 to confirm a more significant rally was developing.
Today's video for subscribers looks at yesterday's trading in more detail and our strategy for our next trade.