There was a valiant attempt yesterday staged by the bulls to try and get the gold price to close above our sighted $1680 level. Gold actually got as high as $1691, but once again in the last hours of trading there was a sell-off which pushed the gold price down to $1677 at the close.

Today there has been a little more weakness in gold trading around the $1673 level. However the pattern we sighted on monday of higher-highs and lower-lows is still very much intact.

Gold price £:

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Gold price $:

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However its worth noting that the rise in gold in $ terms has come at a time of $ weakness. When looking at gold in £ terms the price action has been softer. On monday gold closed at £1069 and has closed slightly lower each day, closing out yesterday at £1065. In £ terms gold really needs to close above £1080 to signal a clear break out.

However it should also be noted that the recent sell off in £ terms hasn’t been as strong as in $ terms. In £ terms the gold price is 11% from its all time high whereas in $ gold is 13% off the highs.

With two trading days left before the weekend can the bulls mount a charge and break out of this consolidation range?