The break above 1307 is a very positive signal and suggests the next rally leg in gold is underway, with a series of higher lows and higher highs forming on the 4 hour chart.
Gold has broken back above the 50 DMA, another positive development, and is closing in on the 20 DMA at 1321. This price action, with gold also trading above the 200 DMA, suggests the bullish trend remains alive - we would expect the major moving averages to provide resistance if the intermediate bear trend was re-establishing itself.
Equities are well off all time highs, coinciding with gold's move higher, whilst the dollar has fallen back to critical support at 80 - a break below this level will accelerate the rally in gold.
Support can be found at 1307, 1298-1300, 1277-1280, 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 13141320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at our short term trading strategy andd some targets for this rally leg.