It is clear that gold is correcting more deeply than we originally thought and the Wave 1 rally looks to have ended at 1391. The dollar has rebounded sharply from lows near 79 and oil and equities are also recovering well after a short sharp sell off.
Gold has retraced 50% of it's recent rally from 1238, however we expect further declines as an ABC correction unfolds.
Support can be found at 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 now looks unlikely.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 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.
Our video for subscribers looks at some potential targets for this correction and our strategy for our next trade.