The FOMC minutes kept open the possibility of December tapering and gold fell sharply, crashing through 1250 and closing near the lows of the day around 1245. The weak tone has continued this morning, with gold still trading under 1250 and consolidating near yesterday's lows.
The price has broken decisively below the bottom boundary of the triangle consolidation and unless it can stage a rebound today, lower prices (and possibly much lower prices) are highly likely. There is little in the way of support below the market before we get to 1180, with only 1220 and 1207 providing any hope for the gold bulls, who will desperately want to reclaim 1250 today.
The dollar surged last night, breaking back above 81 and looking to build on recent gains, oil remains weak and equities remain near all time highs. This is not an environment where gold will shine, with perhaps the only hope being the overwhelmingly bearish sentiment providing a "contrarian" play.
Support can be found at 1220, 1207 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 1250, 1260, 1270, 1277-1280, 1291-1295, 1300, 1310, 1320-1322, 1328-1330, 1338-1342, 1352-1355 and 1360. A break above 1338-1340 would suggest a new bull trend was underway, though it would take a break of 1434 to confirm this was the case, with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in more detail and our thoughts for our next trade.