This morning, gold is trading higher and is back above 1300 and both the 80 and 200 hour MAs with solid buying entering the market.
It is encouraging to see gold hold support in the face of equities hitting new all time highs and the dollar holding gains above 80 - the S&P seems reluctant to move sharply higher after breaking major resistance at 1885-1895 and the dollar appears to be stalling after a strong rebound off 79.
Oil is trading above $102 a barrel and silver is trading near to $20, supporting gold. There is little in the way of data today from the US, with monthly PPI the only release slated for this afternoon.
Support can be found at 1296-1298, 1291, 1285-1287, 1278, 1273, 1267, 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 1304-1307, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.