We expect a break of 1340 today, or possible tomorrow, as the new major rally starts to build up steam.
The dollar remains weak, a critical factor in gold's recent ascent, and is trading around 80. With equities well off all time highs, economic news appearing to weaken and oil surging higher, the environment is favourable for gold to move upwards.
Support can be found at 1320, 1312-1315, 1307, 1295-1300, 1280, 1275, 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 is looking increasingly unlikely.
Resistance can be found at 1330-1332, 1340, 1350, 1360, 1377-1380, 1395-1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at our targets for the next rally leg and our thoughts on gold over the next few trading sessions.