There is a clear pattern of higher highs and higher lows on the daily chart, a classic rally is unfolding after a Wave 2 correction that saw gold retrace 50% of the early 2014 rally.
We anticipate this Wave 3 rally will take the gold price well above 1400, however the first target for this rally is the 1342 March high.
Oil is powering higher this morning, likely influenced by the renewed turmoil in Ukraine. Equities are correcting after making new all time highs, whilst the dollar remains well below the key 80 level.
Support can be found at 1321-1324, 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 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.