This morning gold is again testing the 50 DMA - the 80 hour MA has now become support again as the short term trend turns back to bullish, with the 200 DMA curling back up, confirming the short term bull.
Yesterday the dollar fell sharply, trading well below the key 80 level and remaining below this critical price point this morning. Further dollar weakness will support the resurgent rally in gold. Equities remain well off all time highs and oil has surged higher, trading above $102 a barrel.
Today sees the FOMC meeting minutes released at 7pm UK time which may see some volatility return to gold as traders look for clues in relation to interest rate policy and QE tapering.
Support can be found at 1307, 1304, 1298-1300, 1294, 1277-1280, 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 1314, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart 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 gold rally.