The FOMC announcement of further QE tapering barely made a whimper in the gold market, it appears that QE is now definitely "old news" and the inveitable tapering has been fully priced in.
Dollar weakness has not resulted in a gold rally which is concerning for the bulls - the gold price is now trading well below the 80 and 200 hour MAs which will now serve as resistance. It appears likely that gold is heading back to retest 1268, a break of this level would be very bearish indeed.
The oil price has tumbled recently alongside gold as the Ukraine situation recedes and inflation remains very low, whilst equities continue to move higher, albeit at a slower pace.
Support can be found at 1277-1280, 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 1298-1301, 1304-1306, 1314-1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395 and 1400. 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 looks at the recent trading in more detail and our strategy for short term trading in this market.