Gold consolidated recent gains yesterday, trading in a narrow range with the high of the day coming in at 1342 and the low at 1332, the 200 hour MA providing reliable support.
Gold is moving steadily higher in a clear uptrend, with a weak dollar and rallying oil price providing a boost to the yellow metal, however a resumption of the rally in equities could cap gains in gold and divert investment funds away from commodities in general.
We are now in a seasonally strong period of the year for gold prices, with March to May usually seeing appreciable gains. With a new rally phase underway, we expect this Spring to be a good one for gold.
Support can be found at 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 1340, 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 trading in more detail and our targets for this rally in gold.
Gold is moving steadily higher in a clear uptrend, with a weak dollar and rallying oil price providing a boost to the yellow metal, however a resumption of the rally in equities could cap gains in gold and divert investment funds away from commodities in general.
We are now in a seasonally strong period of the year for gold prices, with March to May usually seeing appreciable gains. With a new rally phase underway, we expect this Spring to be a good one for gold.
Support can be found at 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 1340, 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 trading in more detail and our targets for this rally in gold.