Morning Report

Gold dropped nearing the target set yesterday, whereas now we see that it is trading steadily within the descending channel below the MA 20 and 50 around 1102.00. The oversold signs appearing on momentum indicators could force gold to bullishly correct before continuing its expected bearish overall direction for today. The bearish direction will remain intact, as long as trades remain below 1110.00.

The trading range for today is among the key support at 1048.00 and the key resistance at 1144.00.

The general trend is to the downside 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 1098.00 targeting 1082.00 and stop loss above 1110.00, might be appropriate.