The 20 and 50 DMAs are providing resistance around 1350 and are pointing back down again, with the 20 DMA about to cross over the 50 DMA - a bearish signal.
We expect gold to drift lower this week within the down trend channel, with support likely to come in at 1322, 1306, 1292 and 1272. A break below key support at 1272 will suggest a swift return to 1180.
The moving averages mentioned above and the upper boundary of the down trend channel around 1350 will provide initial resistance, with 1375, 1400 and 1434 the next levels of resistance. A break of key resistance at 1434 will suggest a return to 1480-1500.
Equities are down again this morning as the S&P 500 continues its mild correction. Oil is also down sharply and looks to be set to retest $100 a barrel, whilst the dollar remains weak just above 80.
In this environment, it is not surprising to see some strength in gold, though the rallies are being seen as selling opportunities and a resumption in the equity rally and/or dollar rally will see gold fall sharply.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.