The ongoing Government shutdown and looming debt ceiling deadline should provide some support to gold, though this has yet to materialise which is worrying for the bulls. There is a high likelihood that an agreement on these issues will see gold sell off sharply and this must be appreciated if taking a long position.
However the bulls will see some constructive action in the charts that suggests the worst of the downside may be over. For now, gold remains within a range, with 1277 at the bottom and 1330 at the top. A break out of this range should see a significant move develop.
Support can be found at 1300, 1292-1294, 1277 and 1272. A break below 1272 would suggest a swift return to 1180.
Resistance can be found at 1307, 1314-1316, 1322, 1330, 1338-1342, 1353, 1375, 1400 and 1434. A move above 1434 would be very bullish, suggesting a return to 1500 and beyond.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.