This morning gold is consolidating the gains around 1310 and looks set to move higher, with a new up trend channel forming, the upper boundary of which comes in at 1317. This level also coincies with the 100 DMA which will provide further resistance.
The 200 and 80 hour MAs now become support and the 20 DMA provides further support at 1302.
The dollar has fallen sharply this morning, providing further impetus to gold, however equities remain near all time highs - we maintain our long term view that gold will not enjoy a major rally until we see a significant and sustained correction in equity markets.
Support can be found at 1304-1307, 1298-1301, 1288-1291, 1284, 1277-1280, 1267, 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 now looks unlikely unless we break below 1250.
Resistance can be found at 1314-1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent breakout in more detail and our short term trading strategy.