Overnight, gold has fallen back even though dollar weakness persists, which is worrying for the bulls. We note that recently gold has fallen sharply whenever we see dollar strength, though barely rises at all in the face of dollar weakness.
The bearish RSI divergence on the 4 hour chart is still apparent and suggests that the momentum behind this rally is fading - we expect to see lower prices next week, particularly if the dollar starts to rally as we suspect it will.
Equities are pausing after a strong run up, as is oil. We expect further strength in both these markets which will pressure gold further. However, if oil prices start to run away, inflation concerns will re-emerge and economic growth will start to be threatened, which should be gold positive.
Today's video for subscribers looks at the recent trading and the technical signals in more detail.