Gold is currently trading around 1557 and in our view looks like it wants to retest 1540. As we noted yesterday, a break of 1540 would see a rapid drop towards 1525.
It is a little concerning for the bulls that the dollar weakness this week has not lifted gold at all, though perhaps this is not entirely surprising considering the recent lack of correlation between the dollar and gold.
Oil has given back most of its gains from the recent rally and is approaching a key support area at $92 a barrel. A drop below this support will see a retest of support at $90.
There are a number of data releases from the US this afternoon that could affect gold including retail sales numbers and the Producer Prices Index, a key indicator of inflation.
Today's video to subscribers looks at the recent trading and our strategy for our next trade.