Gold tested support at $1277 yesterday before rebounding, with the price breaking up through the 80 hour MA and moving as high as $1294 this morning.
The next task for the bulls is to break through the 200 hour MA and the psychologically important $1300 level, whilst the bears will want to push the price back below the 80 hour MA and continue the pattern of lower lows.
Equities remain strong, with the S&P breaking through resistance at $1888 yesterday and making a new all time high. The dollar remains well bid above 80 and oil is hovering just below $$100 a barrel.
Support can be found at $1287, $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 $1294, $1298-$1300, $1307, $1318-$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.