Gold outlook positive after a very accurate call on a low for the correction at 1314/13

Daily Forecast - 28 July 2016

Gold Spot

Gold outlook positive after a very accurate call on a low for the correction at 1314/13. We could hold above 1334/36 as I expect the bull trend to resume. As we wrote yesterday, a break higher is a buy signal & targets 1345 then only minor resistance at 1350. We should struggle here but again, shorts look risky. A break higher targets 1358/60 then 1368 & the 2016 high so far (but likely to be beaten eventually) at 1374/75.

Failure to hold first support at 1336/35 risks a slide to strong support at 1327/25. Try longs with stops below 1320. Further losses meet good support at 1314/13. Try longs with stops below 1309.