The ABC Wave 2 correction appears to be almost over, with gold selling off over $100 in the past two weeks - we would not be surpised to see the rally resume from here.
The dollar remains well supported above 80, oil is powering higher again after a sharp correction and equities remain near all time highs. There are signs of a top forming in the S&P 500 however, with the 1880 level providing strong resistance and upward momentum waning.
A significant correction in equities will likely see the dollar fall and gold rise sharply, we suspect a further strong rally in gold will not be forthcoming until this occurs.
Support can be found at 1289-1291, 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 now
Resistance can be found at 1298-1300, 1307, 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 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.
Today's video for subscribers looks at the recent trading action in more detail and our throughts on gold trading for next week.