Gold found support at 1375 and moved higher, making a lower high at 1388 before resuming the decline this morning to currently trade around 1380.
The triangle consolidation pattern, in our view not a "double bottom" as many rather optimistic online commentators have written, continues to unfold and we expect another sharp sell off once the triangle resolves to the downside. There is a chance (approximately 30%) that the triangle will turn out to be a reversal pattern, though we do not expect this to be the case.
The dollar and equities have started to move upwards again after recent declines, putting pressure on gold. Oil is also moving higher and is approaching key resistance in the $98 area - a break of this critical zone will see a powerful rally in oil, with a target of $106. This bears watching, as a surging oil price may help gold, although the correlation between oil and gold has been weak recently.
Today's video for subscribers looks at the triangle consolidation that is forming and our strategy for our current trade.