The price has been struggling to break above the 65 week MA and the long term down trend line for the past couple of months and remains at a crucial juncture - in simple terms a break above 1350 would be very bullish for the longer term and a break of 1240 would suggest a return to 1180 and a continuation of the bearish trend.
Equities and the dollar have both rallied hard in recent trading sessions, putting gold under pressure, whilst oil is struggling to hold above $94 a barrel, adding to the bearish picture.
Gold tends to perform well in September and with the price at the lower boundary of the triangle and equities becoming overstretched, we could see a rally develop from here.
Support can be found at 1273, 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 - a failure to break the 65 week MA would make this scenario much more likely.
Resistance can be found at 1288, 1291-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. A second failure to break through the key 65 week MA would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.