Gold continued to trade in a narrow range yesterday between 1322 and 1306, these levels being the 50% and 38.2% retracements of the recent rally from 1250 to 1361.
The price action is suggestive of further declines and gold does not appear to be in the process of bottoming - a break of 1306 will likely see a sharp drop towards 1250.
The ECB rate announcement could move currencies today which will of course impact on gold, with further dollar strength pressuring gold and a Euro rally seeing gold rise.
Equities remain near to all time highs with little sign of a top forming, whilst oil remains weak, notwithstanding a sharp rebound from very oversold levels yesterday.
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 price action is suggestive of further declines and gold does not appear to be in the process of bottoming - a break of 1306 will likely see a sharp drop towards 1250.
The ECB rate announcement could move currencies today which will of course impact on gold, with further dollar strength pressuring gold and a Euro rally seeing gold rise.
Equities remain near to all time highs with little sign of a top forming, whilst oil remains weak, notwithstanding a sharp rebound from very oversold levels yesterday.
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.