Gold powered higher yesterday, hitting the 61.8% retracement of the recent decline before finding resistance. The market has also reached the 20 DMA and we expect the down trend, which we still consider to be the dominant trend, to resume from here.
Equities remain at or near all time highs and the dollar strength has taken the index close to 81 in recent days - these factors will limit gold's potential advance from here.
A surging oil price, in all likelihood linked to the unrest in Iraq and Syria, has helped gold in recent days, though this kind of market driven reaction often reverses as quickly as it appears.
Support can be found at 1270, 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 - this prospect now looks more likely and the break below 1250 gives us an indication of a likely eventual return to 1180.
Resistance can be found at 1277-1280, 1283, 1289, 1293-1296, 1304-1305, 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The failure to break above the 65 week MA suggests that the intermediate down trend remains in play.
Today's video for subscribers looks at the recent trading in more detial and our strategy for our next trade.
Equities remain at or near all time highs and the dollar strength has taken the index close to 81 in recent days - these factors will limit gold's potential advance from here.
A surging oil price, in all likelihood linked to the unrest in Iraq and Syria, has helped gold in recent days, though this kind of market driven reaction often reverses as quickly as it appears.
Support can be found at 1270, 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 - this prospect now looks more likely and the break below 1250 gives us an indication of a likely eventual return to 1180.
Resistance can be found at 1277-1280, 1283, 1289, 1293-1296, 1304-1305, 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The failure to break above the 65 week MA suggests that the intermediate down trend remains in play.
Today's video for subscribers looks at the recent trading in more detial and our strategy for our next trade.