After finding support at 1440 on Tuesday, gold bounced strongly, forming a potentially bullish "double bottom" on the charts at 1440.
The price has now broken clear of the 20 DMA which is a bullish sign, though for now is still being capped by the 1475-1485 resistance zone and the 61.8% retracement level at 1475 in particular.
Gold has now been trading in a range from 1440 to 1485 for 10 trading sessions and a break out of the range either way should provide a trending move.
Resistance above will be found at 1500 and then at 1525-1530, which should prove to be very strong resistance as it was key support for the previous 18 months.
A break below 1440 could see a sharp sell off, with 1404 the initial target and a trip to the 1300s a distinct possibility.
Oil appears to be forming a top below key resistance at $98, though a break above this level could see a sharp rally develop, taking the price well above $100 a barrel.
The dollar remains weak, with equities powering higher - this suggests economic recovery and inflation, though at present commodities are not confirming this move higher.
Today's video for subscribers looks at the recent trading range in more detail and our strategy for our next trade.
The price has now broken clear of the 20 DMA which is a bullish sign, though for now is still being capped by the 1475-1485 resistance zone and the 61.8% retracement level at 1475 in particular.
Gold has now been trading in a range from 1440 to 1485 for 10 trading sessions and a break out of the range either way should provide a trending move.
Resistance above will be found at 1500 and then at 1525-1530, which should prove to be very strong resistance as it was key support for the previous 18 months.
A break below 1440 could see a sharp sell off, with 1404 the initial target and a trip to the 1300s a distinct possibility.
Oil appears to be forming a top below key resistance at $98, though a break above this level could see a sharp rally develop, taking the price well above $100 a barrel.
The dollar remains weak, with equities powering higher - this suggests economic recovery and inflation, though at present commodities are not confirming this move higher.
Today's video for subscribers looks at the recent trading range in more detail and our strategy for our next trade.