The 4 hour chart is showing a clear and widening bearish divergence, suggesting that the market is building up to a sell off, with silver also faltering and oil finding resistance after a strong rally.
Equities are consolidating just below all time highs and the dollar's decline appears to have halted above the 80 level.
Support can be found at 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - the break below 1250 seems to have been
invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in mroe detail and our strategy for our next trade.