Equities tumbled yesterday and the first signs of a top being formed are appearing in stocks - further weakness would be positive for gold, traders will be watching the 100 DMA in the S&P 500 to provide support.
The dollar remains well below 80. currently trading around 79.50. A break of the March lows at 79.25 would be very bearish and again positive for gold.
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 1321-1324, 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 the unfolding rally.