The yellow metal is now trading above all the major moving averages on the daily chart, suggesting that the 2014 bull market remains intact. On the 4 hour chart, the 80 hour MA again provided support yesterday, with the 200 hour MA curling back up to confirm the short term bull trend.
The dollar has tumbled well below 80 in recent days and is now approaching last month's lows. This, coupled with a correction in equities, has helped to propel gold higher. Oil has also surged higher and is now trading above $103 a barrel.
Support can be found at 1314, 1307, 1304, 1298-1300, 1294, 1277-1280, 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 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and our targets for this rally.