Gold moved ina a very narrow $10 range yesterday, with the high coming in at 1295 and the low at 1285. The low coincided with the 100 DMA and the lower boundary of the uptrend channel, which provided solid support.
However, gold is consolidating near to the previous day's lows, which suggests more downside is possible. The bulls need to push the price back above the 80 and 200 hour MAs, currently at 1298 and 1296 respectively, ideally before the weekend, to ensure the uptrend remains well in place.
The dollar has rallied sharply after briefly dipping below 79 yesterday, equities have stalled at stiff resistance near 1885-1895 and oil is trading around $101 a barrel. We would like to see the dollar retest critical support at 79 to indicate the strength of the market - a break of this level would likely see a sharp sell off as stop losses just below 79 were taken out, however a "double bottom" at this key area would bode well for a strong dollar rally.
Support can be found at 1285-1287, 1277-1280, 1273, 1267, 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 1296-1298, 1304-1307, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
However, gold is consolidating near to the previous day's lows, which suggests more downside is possible. The bulls need to push the price back above the 80 and 200 hour MAs, currently at 1298 and 1296 respectively, ideally before the weekend, to ensure the uptrend remains well in place.
The dollar has rallied sharply after briefly dipping below 79 yesterday, equities have stalled at stiff resistance near 1885-1895 and oil is trading around $101 a barrel. We would like to see the dollar retest critical support at 79 to indicate the strength of the market - a break of this level would likely see a sharp sell off as stop losses just below 79 were taken out, however a "double bottom" at this key area would bode well for a strong dollar rally.
Support can be found at 1285-1287, 1277-1280, 1273, 1267, 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 1296-1298, 1304-1307, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
