Although the ECB confirmed further stimulus measures, the package announced was seen as less aggressive than expected and this saw the Euro move higher and the dollar decline.
Gold and equities both moved higher, though the rally in gold was quickly capped at 1257 and this morning the price is struggling to maintain a foothold above 1250, with little follow through buying after yesterday's pop.
Equities surged to new all time highs and are continuing to forge higher this morning, with the dollar also regaining some lost ground around 80.50. The May NFP number is slated for release at 1.30pm UK time - a strong number will further boost equities and the dollar and see gold back on the defensive and a weak number will have the opposite effect.
Support can be found at 1250-1252, 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 - this prospect now looks more likely and the break below 1250 gives us an indication of a likely return to 1180.
Resistance can be found at 1257-1260, 1268, 1274-1277, 1283, 1289, 1293-1296, 1304-1305, 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The failure to break above the 65 week MA suggests that the intermediate down trend remains in play.
Today's video for subscribers looks at the recent trading in more detail and the price movements in the wake of the ECB annoucenment yesterday.