After forming a "triple top" at resistance at 1314, gold tumbled $30 yesterday, making a low at the 100 DMA at 1286, also near to the bottom boundary of the up trend channel.
This morning, gold has stabilised around 1290, with the weak dollar and equities and rallying oil helping to support the price.
Gold is now trading back below the 80 and 200 hour MAs and needs to regain these key levels to sustain the uptend, which remains intact and in play.
There is little in the way of data today to move the maket, however the dollar is getting very close to the key October 2013 low at 79, a break of which could see a sustained sell off which would boost gold substantially.
Support can be found at 1288-1291, 1284, 1277-1280, 1267, 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 now looks unlikely unless we break below 1250.
Resistance can be found at 1296, 1304-1307, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
This morning, gold has stabilised around 1290, with the weak dollar and equities and rallying oil helping to support the price.
Gold is now trading back below the 80 and 200 hour MAs and needs to regain these key levels to sustain the uptend, which remains intact and in play.
There is little in the way of data today to move the maket, however the dollar is getting very close to the key October 2013 low at 79, a break of which could see a sustained sell off which would boost gold substantially.
Support can be found at 1288-1291, 1284, 1277-1280, 1267, 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 now looks unlikely unless we break below 1250.
Resistance can be found at 1296, 1304-1307, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.