Gold was on the defensive during early trading yesterday. It received a boost from news that France is not planning to sell any gold reserves, after rumours surfaced suggesting this was an option, sending the price temporarily up from $1322 to $1337.
This "knee jerk" rally did not last and traders saw an opportunity to sell into the price rise, with gold falling back to settle under $1330. This morning, gold is slightly firmer on news of the Federal Government partial shutdown in the US and a weaker dollar.
Gold remains within a well established down trend, and below both the 20 and 50 DMAs, with the 20 DMA having just made a bearish crossover with the 50 DMA.
Resistance can be found at $1337, $1344, $1348-$1353, $1375, $1400 and $1434, with support coming in at $1322, $1317, $1307, $1300, $1292 and $1272. A break above $1434 will suggest a rise towards $1500 and a break below $1272 will suggest a swift return to $1180.
Equities remain in a corrective mood, though the bull trend is firmly in place and intact. And, oil continues to drop, hitting $101 a barrel yesterday.