Whilst the bulls will point to the break out of the down trend channel as evidence of a new rally leg starting, the bears will note the lack of follow through buying since the breakout and the failure to break the 50 DMA and move above 1350.
The dollar weakness is evidently helping gold to move higher and for now the surging stock market is not hurting gold as much as it has in recent weeks. The plummeting oil price is not pressuring gold either - the bulls will look to this as further evidence of the underlying strength in gold, however the usual correlation between gold and oil has not been evident for some time.
Support can be found at 1328-1330, 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1338-1342, 1353, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.
Today's video for subscribers looks at some possible Elliot Wave patterns and our strategy for our next trade.