We expect the down trend to continue through December, though it is worth noting that the dollar is struggling to regain 81 - further dollar weakness could give gold a boost and a break of the down trend channel would suggest a move back up towards 1300 was likely.
Equities remain strong, with December a historically favourable month for the stock market, whilst the continued weakness in oil suggests inflation is not a concern at all in the short/medium term.
The trading will start to quieten down as we approach Thanksgiving on Thursday, with many traders starting to leave their desks on Wednesday afternoon. A word of caution - the thin trading conditions can lead to exaggerated moves in the markets, particularly if any unexpected news events transpire.
Support can be found at 1225, 1220, 1238, 1250, 1207-1210, 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.
Resistance can be found at 1260, 1270, 1277-1280 and 1291-1295. A break above 1295 would suggest an end to the downtrend, though it would take a break of 1360 to confirm this was the case.
Today's video for subscribers looks at yesterday's trading and the down trend channel in more detail.