Gold stalled around 1250 on Monday and, with momentum waning, it was no surprise to see gold sell off yesterday. The price fell as low as 1218, finding suppot at the 20 DMA and a local top appears to be in.
The question for gold traders now is whether this is the beginning of a move back down to major support at 1180 or a pause in a new rally phase that will take gold back above 1260.
We suspect the former - the down trend remains firmly in place and equities and the dollar are moving higher. The release of the FOMC minutes yesterday produced only a muted reaction and a stronger than expected ADP jobs report helped the bears cap the price below 1230.
Support can be found at 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1237-1240, 1246, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our throughs for our next trade.
The question for gold traders now is whether this is the beginning of a move back down to major support at 1180 or a pause in a new rally phase that will take gold back above 1260.
We suspect the former - the down trend remains firmly in place and equities and the dollar are moving higher. The release of the FOMC minutes yesterday produced only a muted reaction and a stronger than expected ADP jobs report helped the bears cap the price below 1230.
Support can be found at 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1237-1240, 1246, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our throughs for our next trade.