This morning gold is trading slightly higher and is back above the 80 and 200 hour MAs at 1302. The triangle pattern will soon be resolved, with the odds favouring a downside breakout as the trend continues in the direction it was going before the triangle correction.
Equities remain near all time highs, though are struggling to break stiff major resistance at 1885-1895 and the dollar is trading around 80 once more. Further dollar weakness, particularly a move back towards 79, will give gold a boost and a break of key support at 79 would be very bullish for gold.
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 1309, 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.
Today's video for subscribers recaps last week's trading and looks at our trading strategy for the week.