The precious metal is consolidating around 1200.00 and below its trend line that is capping a move higher at 1208.00. A break above this level may hand control to bulls and spur them to attempt a move on the last trend line touch at 1214.64. From this level a move up to 1236.50 would potentially signal a bottom forming and might see buyers add to seasonal long positions to year end. Should this area be broken a move to resistance at 1266.53 may follow but this would force short positions to close which could result in a short squeeze.
Under 1200.00 the chart remains in the control of gold bears. The 1189.75 level was used as support yesterday and a loss of this are might find support at the next level of 1183.44. The low was set at 1160.00 and this move on the daily chart formed a doji candle that buyers too advantage of to drive the price higher. A loss of this support may open the way for a move down to 1120.00.
The UK 100 index is positioned at key support having formed a fourth touch on its supporting trend line at 7416.00 today. The selloff in emerging markets continues and this is spilling over into global equities. A loss of this level changes the dynamic of the index and puts a risk off tone on price action. The 7300.00 is now key to the index with a loss of this level shifting focus to the 7190.00 area of support. Supports below come in at 7110.00 and 7000.00.
Resistance can be seen at the last lower high at 7536.50 and a move above this area opens the way to higher levels. The next lower high is located at 7647.00 and this would put price action back into the top half of the channel and close to the resistance trend line at 7750.00. A breakout of the trend line paints a bullish picture, with a close above the high at 7908.90 signalling a test of 8000.00 may develop.