This morning, gold is under mild pressure as the dollar finds more strength and nears the key 81 level that the bulls must regain to tip the scales in their favour. It is interesting that oil remains weak and inflation very subdued, making a strong rally in gold less likely.
Equities remain near all time highs and it is clear that further equity strength will be bearish for gold - we suspect that gold will turn over here and retest 1180 within a couple of weeks.
Support can be found at 1237-1240, 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 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 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more
significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on the medium term prospects for gold.