Gold traded lower in quiet trading yesterday, making a lower high and a lower low and closing at 1313. This morning, gold has received a small boost from a weaker dollar and is currently trading just below what is becoming important resistance at 1320-1322.
The key to gold's performance for the rest of 2013 remains the dollar and to a lesser extent equities and oil. A break above 81 for the dollar would see gold down sharply and suggest a return to the lower part of the 1180-1434 range as a minimum.
Equities remain well supported and continue to attract funds in search of yield, diverting investment away from commodities, whilst the tumbling oil price suggests inflation is not a concern.
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 1320-1322, 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 in more detail and our strategy for our current short position.
The key to gold's performance for the rest of 2013 remains the dollar and to a lesser extent equities and oil. A break above 81 for the dollar would see gold down sharply and suggest a return to the lower part of the 1180-1434 range as a minimum.
Equities remain well supported and continue to attract funds in search of yield, diverting investment away from commodities, whilst the tumbling oil price suggests inflation is not a concern.
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 1320-1322, 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 in more detail and our strategy for our current short position.