In the afternoon, gold moved sharply higher, on the back of this successful hold of the 1590-1591 support area, apprehension related to the reopening of Cypriot banks today and traders opening new June positions in gold.
Gold made a high of 1608 and stabilised well above 1600, holding the gains to close around 1605. This morning, gold has held the gains and looks poised to move higher ahead of the long Easter weekend. However, we may see further options expiry related movements and some volatility ahead of the extended holiday.
Oil continues to move higher, trading at almost $97 - this will be supportive for gold as it will have the effect of stifling the economic recovery and stoking inflation fears. The dollar is trading above 83, though gold still has very little correlation with the dollar at the moment.
Today's video for subscribers looks at yesterday's trading in more detail and our strategy for our next trade.