The combination of falling equities, oil and dollar and the ongoing deadlock in Washington finally saw gold move higher yesterday, with the price hitting a high of 1328 and arriving at the upper boundary of the down trend channel.
A break of this channel would be bullish and suggest a move back to 1375 and 1400, though a resolution to the Government shutdown could see a sharp rally in equities and the dollar which would be bearish for gold in the short term.
The debt ceiling deadline is also now looming closer, which is another potentially bullish factor for gold, particularly if it becomes entangled with the Budget deadlock.
The Government shutdown has also resulted in a delay to much of the economic data from the US, meaning traders have less to guide them and the data that is released increases in importance.
Support can be found at 1320, 1306-1308, 1300-1302, 1292, 1277 and 1272. A break of 1272 would see a swift return to 1180.
Resistance can be found at 1325-1328, 1338-1340, 1353, 1375, 1400 and 1434. A break of 1434 would suggest a return to 1500 and perhaps beyond.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
A break of this channel would be bullish and suggest a move back to 1375 and 1400, though a resolution to the Government shutdown could see a sharp rally in equities and the dollar which would be bearish for gold in the short term.
The debt ceiling deadline is also now looming closer, which is another potentially bullish factor for gold, particularly if it becomes entangled with the Budget deadlock.
The Government shutdown has also resulted in a delay to much of the economic data from the US, meaning traders have less to guide them and the data that is released increases in importance.
Support can be found at 1320, 1306-1308, 1300-1302, 1292, 1277 and 1272. A break of 1272 would see a swift return to 1180.
Resistance can be found at 1325-1328, 1338-1340, 1353, 1375, 1400 and 1434. A break of 1434 would suggest a return to 1500 and perhaps beyond.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
