Yesterday's trading session saw equities down sharply, with oil and other commodities joining the rout and the dollar benefitting as we witnessed a "flight to safety". It is disconcerting that gold could not capitalise on this "safe haven" trade as it fell sharply alongside other risk assets.
We maintain our bearish stance on gold and a break of 1274 would suggest a return to 1240 was on the cards.
Support can be found at 1280, 1274, 1263, 1257-1260, 1250-1252, 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 - a failure to break the 65 week MA would make this much more likely.
Resistance can be found at 1292, 1302-1305, 1310, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be witnessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
Today's video for subscribers looks at the recent trading action in more detail and our strategy for our next trade.