It is interesting to note that recently the rallies in gold have been occurring during the NY session rather than during the Asian trading hours - this suggests the market is moving back to a bullish posture rather than relying on physical demand from Asia to underpin the market.
This morning, gold has fallen back to 1582, though the impulsive nature of the rallies since Friday is encouraging for the bulls. The next target for the bulls is the 20 DMA at 1592, then the 50 DMA at 1607 before the key resistance level at 1620 comes into play.
Support can be found initially at 1580-1582, then below that at 1567 and 1560. A break below 1560 will suggest a retest of 1540 and potentially a move down to 1525.
Equities appear to be slowly forming a top, though this may take a few more weeks to complete. We do not expect to see a powerful rally in gold until equities break down and correct.
Today's video for subscribers looks at yesterday's trading in more detail and our targets for this rally.