Gold retraced back to 1335 later in the session but closed above 1333 and is set to close the week above both the 65 week MA and the long term down trend channel in a potentially significant move.
Strong follow through buying next week and a break of 1350 would confirm that the intermediate term down trend is over and the bulls are back in charge of gold, however a sharp reversal here would be very bearish as it would potentially signify another failed attempt to break the 65 week MA.
If the bullish scenario is playing out, we would expect a sharp correction in equities and continued dollar weakness as well - things could get interesting for the rest of the year if this is what is happening!
Support can be found at 1333-1335, 1325-1326, 1318-1322, 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - however the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now much less likely.
Resistance can be found at 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break through the key 65 week MA - if the breakout is successful, this would suggest that the intermediate down trend is at an end and higher prices are ahead.
Today's video looks at the breakout in more detail and our strategy for our next trade.