INTERMEDIATE TERM TREND: BEARISH/NEUTRAL
SHORT TERM TREND: BULLISH
VERY SHORT TERM TREND: BULLISH
After surging higher and hitting a high of 1222 on Friday, gold has consolidated around the 1200 level. It is unclear whether this move is the start of a significant new rally leg or a counter trend move within the well established down trend. A break of 1222 would suggest the former and a break below 1193 would suggest the latter.
The down trend channel has so far contained the price, with the 61.8% Fib retracement level providing further resistance - the market has managed to break above the 50 DMA and the 20 DMA has curled upwards. The 50% Fib retracement level is providing support at 1193.
Equities remain well supported, as does the dollar which continues to make new highs. Oil will be closely watched - the tumbling oil price has dispelled any lingering notions of inflation and interest rate rises, with further falls likely to impact gold negatively.
Support can be found at 1200, 1193, 1188, 1180-1183, 1175-1178, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000 . The break of 1180 has serious bearish implications for gold and suggests a decline to 1000-1050 in the short term, unless gold can hold above this level and build a base to move higher.
Resistance can be found at 1205, 1208, 1222, 1225, 1235, 1250, 1255, 1263, 1271-1273, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335 and 1345. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and the break of 1180 suggests the bears are in full control.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.