Gold recovered somewhat in quiet trading yesterday after finding a low of 1272 in the morning session. The yellow metal rose as high as 1297 overnight before backing off and the market is still in a clear down trend.
The next down trend resistance line is currently at 1301 and gold has been unable to reach this resistance area yet and looks to be curling over for another leg down, despite continuing dollar weakness.
The surprising continued dollar weakness is the only saviour for gold at the moment and the only reason the price are not back down at 1200 or lower - it can only be a matter of time before the dollar recovers and gold is pressured lower.
Equities are moving higher again this morning after a mild correction - it is our contention that the rally in equities is nowhere near finished yet and until it is, gold will struggle to sustain any kind of meaningful rally.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our current trade.
The next down trend resistance line is currently at 1301 and gold has been unable to reach this resistance area yet and looks to be curling over for another leg down, despite continuing dollar weakness.
The surprising continued dollar weakness is the only saviour for gold at the moment and the only reason the price are not back down at 1200 or lower - it can only be a matter of time before the dollar recovers and gold is pressured lower.
Equities are moving higher again this morning after a mild correction - it is our contention that the rally in equities is nowhere near finished yet and until it is, gold will struggle to sustain any kind of meaningful rally.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our current trade.