The yellow metal is currently trading at 1303 and the short term downtrend is clear, with a well defined pattern of lower lows and lower highs. The dollar continues to move higher, trading well above 81, and equities remain near all time highs. Until we see a significant correction in equities, coupled with dollar weakness, we will not see a major rally in gold.
Traders will be eyeing the conflict in Gaza this week, though any movements in reaction to events will be short term and temporary.
Support can be found at 1299-1301, 1292, 1285-1287, 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 much more likely.
Resistance can be found at 1310, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be wtinessing a second failure to break through the key 65 week MA - this 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.