After a muted reaction to the FOMC minutes, which contained nothing new to give traders an indication of the Fed's tapering plans, gold remains within the recent consolidation triangle.
These triangle patterns are usually "continuation patterns", that is the price will continue in the direction it was moving before the consolidation. For gold, on the time scale we are considering, this is clearly up.
The triangle should therefore resolve with an upside breakout, with the initial target for the breakout being 1400-1405. The upper boundary of the uptrend channel is currently at 1407 and there is significant resistance at 1415 and 1425 above this.
Support can be found at 1357-1359, 1352, 1340-1342, 1325-1328 and 1318 below the market, with the current price around 1370.
Equities remain in corrective mode and the dollar is finding a little support around 81, though gold looks to be in a strong position since breaking resistance at 1350 and we expect further gains in the short term.
Today's video for subscribers looks at yesterday's action in more detail and our strategy for our next trade.
These triangle patterns are usually "continuation patterns", that is the price will continue in the direction it was moving before the consolidation. For gold, on the time scale we are considering, this is clearly up.
The triangle should therefore resolve with an upside breakout, with the initial target for the breakout being 1400-1405. The upper boundary of the uptrend channel is currently at 1407 and there is significant resistance at 1415 and 1425 above this.
Support can be found at 1357-1359, 1352, 1340-1342, 1325-1328 and 1318 below the market, with the current price around 1370.
Equities remain in corrective mode and the dollar is finding a little support around 81, though gold looks to be in a strong position since breaking resistance at 1350 and we expect further gains in the short term.
Today's video for subscribers looks at yesterday's action in more detail and our strategy for our next trade.
