The low of yesterday at 1526 has held for now and gives scope for a potential "double bottom" to form on the daily chart.  Gold has recovered well off the low, however it still remains in a steep down trend and the price needs to move above 1560 to break out of this channel.

The FOMC minutes signalled no change to the Fed's QE policy and caused barely a ripple in the market last night.  Previous FOMC minutes have been big market moving events. 

Today's video looks at the potential for a bottom at 1526 and what we are looking for before we go long.

As we predicted yesterday, the failure to hold support at 1550 saw gold sell off further and the price is now approaching the 1522 major support level.

If gold can hold here and form a "double bottom" this can provide a strong technical base for a new rally upleg, however the market looks very weak and 1522 looks vulnerable to us.

The low for the day is 1526, this is close enough to confirm the "double bottom", however we must wait and see what develops here before even thinking about going long.

The gold price has fallen into the support zone around 1550 and found some inital support there.  It is too early to tell whether the selling has abated or whether a much cited test of 1522 is on the cards.  The final Fib support level was at 1586 and there is little in the way of support below 1550.

Many of the traditional indicators are massively oversold, however they can stay that way for a protracted length of time in a strong downtrend.  We look for our usual signs that a bottom is in before committing to go long.

Gold has failed to rally from 1580 and is still being sold off this morning.

Our long has been stopped out for a loss of $18 and it seems clear to us that gold is going to continue to sell off to 1550 at least.  If the market cannot find support at 1550 or 1522 it is very bearish indeed and we will have to reconsider our intermediate outlook.

We will watch for clear signs of a bottom at these levels.

After hitting a high of 1603 yesterday, gold has backed off and is under selling pressure again this morning.  The support at 1580 has given way and the market has made a new low at 1570.

It is critical that gold holds this area and does not fall further or the implications are very bearish for the longer term timeframe.

We are long from 1588 but with a tight stop so our "at risk" capital is minimal on this trade.

Our long term target for this correction of 1589 has now been reached and the market appears to have found support at 1580.

We have taken a long position in the market at 1588, as alerted to our subscribers last night.  We have placed a tight stop and will, as usual, look to trail the stop up as the price rises.

The sentiment towards gold is overwhelmingly bearish, with almost every analyst and commentator saying that 1522 is now all but inevitable, so our long trade is definitely going against the crowd.  We like that.

As we predicted, once the support at 1624 gave way, gold fell dramatically lower as stop losses were hit one after the other.

We took a short position at 1622 as the support gave way and closed it this morning at 1589 for a quick $33 profit on what we saw as a relatively low risk "in and out" play.  Our subscribers were alerted to our trade and had the opportunity to profit alongside us.

Today's video looks at our targets and strategy over the next few trading sessions and where support is likely to lie.

After a quiet day of trading over the Bank Holiday in the UK, gold continues to drift lower, below all of the major MAs and inside a two month old down trend channel.

Whenever gold has risen to the top of the channel it has found resistance and turned back, though the decline has been orderly.  We are expecting the down trend to continue until our long term downside target has been hit.

Today's video looks again at this target and why we feel it is an important price point.

Gold has continued to sell off and is now trading in the 1630s and below all of the moving averages that we monitor.  Our caution with the rally to 1672 earlier in the week was well advised.

Today's video looks at our targets for this correction and the timescales we are looking at for a bottom, needless to say we expect lower prices.

As we suspected, the gold rally ran out of steam in the mid-1660s and we have seen more mild follow through selling overnight.

Gold is now back under the 20 DMA and inside the downtrend channel again and we would expect a test of the double bottom at 1624 at the very least.

Our decision to sit on the sidelines for the past two months has not been exciting or profitable but our patience will be rewarded when a suitable set up arises in gold.

We do not expect to have to wait long for this, as detailed in today's video.