The gold price rose steadily throughout the day, hitting a high of 1424 before backing off, however overnight oil has risen above $112 a barrel, propelling gold through resistance at 1425 and onto a new high for this rally at 1432 as the threat of military action becomes more acute.
It is clear that the Syrian situation and the very real threat of war in the Middle East is responsible for this move in gold and as such it is dangerous to try and trade what is an unknown quantity. However, it is also clear that when the crisis abates, gold and oil will sell off sharply. This may be some time away and sitting on the sidelines seems to be the best place for now.
Equities have sold off sharply in recent days and the dollar has failed to attract the safe haven bid, with funds flowing into oil and gold.
Today's video for subscribers looks at some possible Elliot Wave counts and our strategy for our next trade.