INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND NEUTRAL/BULLISH
Gold remains within the recent 50 point trading range between 1225 and 1175, having tested the bottom boundary of the range on Monday before rebounding strongly above 1200 yesterday on the back of a weak dollar. There is significant resistance at 1210 and yesterday's high at 1205 before gold reaches the major resistance at 1223-1225.
Gold continues to coil for a big move one way or the other - we still consider that the odds favour the downside as the prevailing trend remains down and gold is trading below most of the major moving averages. The pattern should resolve itself within the next week or two.
Gold has not benefitted particularly from the recent sharp correction in the dollar, which is concerning for the gold bulls - any resumption of the dollar rally will most likely spell trouble for gold.
Equities remain near all time highs, diverting investment funds away from commodities and metals, however oil has recently moved higher and is attempting to rally further.
Support can be found at 1200, 1193, 1184, 1178-1182, 1175, 1160, 1142-1145, 1131, 1124, 1100, 1085, 1045, 1000, 950, 867 and 806. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1204-1205, 1207, 1209-1210, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. After a promising move higher following the break of 1180 last year, gold has failed to break the intermediate down trend and is now heading lower again, with the 2014 lows in sight.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.