Gold is trading at around 1580 this morning on decent demand out of Asia, as market participants see value at these price levels and gain confidence that the recent decline has halted.
Oil has bounced off the 61.8% retracement of its recent rally and is trading slightly higher this morning and the dollar has dropped a little, both of these factors are helping to lift the gold price in the early trading session.
Gold continues to build a base above 1550 in anticipation of a new rally leg that should take the price to a new cycle high by July 2013. Whether this cycle high corresponds with an all time high as the previous one did remains to be seen, though we expect the price to be many hundreds of dollars higher by this target date.
Today's video looks at yesterday's price action in more detail and our strategy for our current trade.