Gold is trying to trade higher, but we have a lot of resistance at these levels until 1180 is broken. Now we know 1180 acted as good support on the way down, therefore it will act as good resistance on the way up. Although we may see weakness initially today, the market looks like it is forming a base. Therefore we would be looking to buy into any short term weakness that is evident.
Good support remains at 1161/60 and we would be buyers down at these lower levels, keeping stops below 1155. If we take out 1155 there will be further selling pressure into 1151 even possibly 1146. This would then serve as a base and we would once more be buyers once we are down at these levels.
Now if we break the 1180 resistance level we would be buyers. A break above this level would be seen as a very positive step for gold and we would then expect buyers to take us higher to 1191 possibly even 1200, before sellers are evident once again.
