A break of 1260 would confirm to us that the next down leg was beginning, though we will be keeping an eye on the dollar, which has failed to hold the 81 level and is currently trading around 80.75. Ideally, we would like to see a break of the triangle in gold correspond with a resumption of the dollar rally above 81.
Oil remains weak, trading near $93 a barrel and equities continue to move higher, with the S&P breaking 1800 briefly yesterday. Silver has already broken below its 15 October low and looks to be leading gold lower, with a retest of $18 on the cards.
Support can be found at 1270, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1277-1280, 1291, 1295, 1300, 1310, 1320-1322, 1328-1330, 1338-1342, 1352-1355 and 1360. A break above 1338-1340 would suggest a new bull trend was underway, though it would take a break of 1434 to confirm this was the case, with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.