Gold is now above both the 20 and 50 DMAs and closing in on the major 200 DMA, which is currently just above 1300. A move through this level should spark significant short covering and an acceleration in the move higher.
Support can be found at 1280, 1270-1275, 1266-1268, 1250-1255, 1237-1240, 1220-1225, 1210, 1200, 1188-1190 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1288-1294, 1302-1305, 1326-1330, 1350, 1360 and 1377-1380. The breakout above 1280 suggests an end to the intermediate term down trend, though it will take a close above 1300 to confirm a more significant rally is now developing.
Today's video for subscribers looks at the breakout in more detail and our strategy for our next trade.