Morning Report

Gold approached our defined technical target for the short term basis at 1090.00, placing a temporarily low at 1094.00-click here to check the short term outlook-. Yesterday's bearish engulfing candlestick pattern has opened the door for further bearishness towards 1070.00 zones as we believe that, the daily bearish harmonic AB=CD pattern is still negatively affecting the metal. A break of 1090.00 will accelerate these descending movements. To recap, we keep our negative overview to the downside over intraday basis.

The trading range for today is among the key support at 1045.00 and key resistance now at 1160.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1108.00 targeting 1085.00 and stop loss above 1127.00 might be appropriate.