Gold hit a high of 1392 and a low of Friday, the entire day's trading within the previous day's range (an "inside day"). Gold remains within a triangle consolidation, with the most likely scenario an eventual break to the downside, as triangles are most often continuation patterns, with the preceding trend (in this case down) continuing.
Oil has found some strength and is pressing against key resistance around $98 a barrel - a break of this area will be very bullish and suggest a rally in the short term to $106. This would be potentially bullish for gold, though recently the correlation between oil and gold has been weak - gold has been influenced mainly by movements in equities and to some extent the dollar in recent weeks.
This week sees the FOMC meeting on Wednesday, where we will get an insight into the Fed's thoughts on the future of Quantitative Easing that could see a strong move in gold.
Today's video for subscribers looks at the triangle consolidation in more detail and our strategy for our current trade.