This morning, gold is under pressure and has broken below the 80 hour MA support, making a low at 1286. The 80 and 200 hour MAs will now become resistance and the bears will look to press gold down towards the 1283 low from last week as their next target.
Equities remain strong, pressuring gold, whilst the dollar continues to trade well below 80. This is supporting gold and is probably the reason why we haven't seen a sharper decline in the yellow metal.
Support can be found at 1286, 1283, 1277-1280, 1267, 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 looks unlikely unless we break below 1250.
Resistance can be found at 1291-1293, 1298-1300, 1304-1306, 1314-1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart 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 in more detail and our thoughts on the near term direction of gold.