Gold Signal Update

Gold has risen steadily again today, hitting a high of 1307 as the dollar tumbles below 81 in what looks like a washout move lower.  Whilst we did not expect gold to recover back above 1300, it is clear the move is primarily driven by dollar weakness in thin trading and we suspect the move is unsustainable.

There has been little else of interest to move markets today, apart from weekly jobless claims coming in slightly better than expected that should on the face of it be bearish for gold and bullish for the dollar.

A close above 1300 will give the bulls some cheer, though the down trend is firmly entrenched and there is little of fundamental interest to ignite a sustained gold rally.  Equities are flat on the day and oil is down sharply at $103 a barrel.

Resistance comes in at 1309-1312, 1318-20, 1325, 1338-1342 and 1348-1350.  A break above 1350 looks very unlikely now, though would see a resumption of the recent rally and a move towards 1400 and 1425.

Support comes in at 1300, 1283, 1273, 1268, 1260 and 1238.  Below this 1215, 1207 and 1180 are the next support levels with a break of 1180 targeting 1156 and possibly much lower with 1050 our target if the decline accelerates through 1156.

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OUR GOLD CURRENT TRADE 

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 SLD at 1316.23  stop 1326.00 On Aug 09
TP 1300.00

STOP LOSE WAS MOVED TO Break Even (1316.23).

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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 

 Do your own due diligence. 

No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend. 

 King Regards