The question for gold traders now is whether this is the beginning of a move back down to major support at 1180 or a pause in a new rally phase that will take gold back above 1260.
We suspect the former - the down trend remains firmly in place and equities and the dollar are moving higher. The release of the FOMC minutes yesterday produced only a muted reaction and a stronger than expected ADP jobs report helped the bears cap the price below 1230.
Support can be found at 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1237-1240, 1246, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our throughs for our next trade.