The metal delayed breaching the 835.40 level where at the same time the downside classical technical pattern has weakened and from here we advise to trade cautiously since we see the chance for more upside movements. We need to watch the 873.65 and the 890.55 levels closely where if breached this will go against our expectation; yet if failed, it will continue to decline. Momentum indicators show gold being overbougth whereas the price is starting to show signs of bullish movements adding more to the fact that trading today will be volatile. The direction on the short term is still to the downside but breaching the 890.55 level on the four hour charts will open the way for the metal to reach 914.50.
The trading range for today is among the key support at 820.90 and the key resistance at 890.55
The general trend is to the downside as far as 934.00 remains intact with targets at 649.20 and 615.60