Gold is moving steadily higher in a clear uptrend, with a weak dollar and rallying oil price providing a boost to the yellow metal, however a resumption of the rally in equities could cap gains in gold and divert investment funds away from commodities in general.
We are now in a seasonally strong period of the year for gold prices, with March to May usually seeing appreciable gains. With a new rally phase underway, we expect this Spring to be a good one for gold.
Support can be found at 1330-1332, 1322, 1312-1315, 1307, 1295-1300, 1280, 1275, 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 is looking increasingly unlikely.
Resistance can be found at 1340, 1350, 1360, 1377-1380, 1395-1400, 1420 and 1435. The breakout above 1300 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 targets for this rally in gold.