Gold bounced back strongly yesterday, spurred on by a tumbling dollar falling below 81. The gold price rose sharply in the afternoon session, though found resistance at the 50 DMA that has held the price back for weeks and the upper boundary of the down trend channel at 1317.
Strong Chinese data gave the bulls some cheer, though this was dampened by Fed officials confirming that tapering is likely to begin in September, barring a reversal in the gradually improving US economy.
The volume on the rally was not particularly impressive and was stopped at strong resistance. We do not therefore expect to see much more upside before the recent down trend reasserts itself.
Equities remain near all time highs and oil is trading above $104 a barrel. With little in the way of data today, traders may be looking to next week's packed economic slate for further direction, though we are well into holiday season now and trading conditions remain thin.
Today's video looks at yesterday's trading in more detail and looks at what we can expect next week.
Strong Chinese data gave the bulls some cheer, though this was dampened by Fed officials confirming that tapering is likely to begin in September, barring a reversal in the gradually improving US economy.
The volume on the rally was not particularly impressive and was stopped at strong resistance. We do not therefore expect to see much more upside before the recent down trend reasserts itself.
Equities remain near all time highs and oil is trading above $104 a barrel. With little in the way of data today, traders may be looking to next week's packed economic slate for further direction, though we are well into holiday season now and trading conditions remain thin.
Today's video looks at yesterday's trading in more detail and looks at what we can expect next week.