All of the moving averages are pointing upwards and gold is looking in good shape as we enter a strong seasonal period for the yellow metal, with further gains anticipated.
The dollar remains weak and is in danger of dropping through support at 80, oil is still well above $100 a barrel and equities are off all time highs. Economic news is still mixed and appears to be weaker than a couple of months ago, this uncertainty is also favourable for gold.
Support can be found at 1322, 1312-1315, 1307, 1295-1300, 1280, 1275, 1250-1255, 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, though this is looking increasingly unlikely.
Resistance can be found at 1330-1332, 1340, 1350, 1360, 1377-1380, 1395-1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
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