On the downside, support can be found around the 61.8% retracement of the April rally around 1298 - gold has been trading in this narrow band for the past 36 hours and a break out either way will set the direction for next week.
The dollar remains weak and well below the critical 80 level, supporting gold, whilst equities are still well off all time highs, with tech stocks in particular taking a beating this week.
The extended holiday weekend may see some position squaring and volatility later in the session, though we expect gold to continue to trade in the narrow range until next week. There is little on the economic slate today, with weekly jobless claims and the Philly Feb Outlook the only items of interest.
Support can be found at 1293, 1283, 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 1304, 1314-1315, 1320-1322, 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 the recent trading in more detail and the outlook for next week.