Overnight dealings in gold have been quiet with a neutral bias - gold continues to climb slowly and steadily higher, though key resistance at 1620 has yet to be tested, never mind broken.
Until this level is breached, there seems to be little reason to go long here, as the bottom has not been confirmed.
The action since the 21 February bottom in gold is not indicative of a major bottom and looks corrective in nature, though the fact that gold recovers strongly from every dip in price, is trading well above its 20 DMA and is climbing steadily higher will give the bulls some encouragement.
A break of 1620 would confirm a bottom is in, though it would be an unusual chart pattern for a significant price low point.
Silver made a new low for this correction yesterday, though gold is well above its February lows at 1554, again demonstrating the underlying relative strength in gold at this time. Oil continues to rally, supporting gold and the dollar's progress has stalled recently around 83.
However, we believe the major outside market affecting gold at this time is equities - we need to see a meaningful correction in equities before a strong rally in gold can begin.
Today's video for subscribers looks at recent trading in more detail and outlines various scenarios for our next trade.