Although it is possible that gold is forming a bottom at 1180, we suspect there is a little more downside to come, with 1156 our long standing target. A washout slam down to 1000-1050 remains a real possibility, though a dip to this level would be seen as a fantastic long entry point.
Oil continues to hold gains above $103 a barrel and looks to be headed for $106 in the short term, whilst equities are rallying again - the recent correction looks to have run its course and we expect higher stock markets over the next few months.
The dollar is consolidating its recent rally around 84.50 and looks ready to move higher again soon - this will pressure gold and would cap any further gains in the short term.
Today's video for subscribers looks at the recent trading in more detail and our targets for this rally in gold.