Morning Report

Yesterday's bearish candlestick formation along with the consecutive negative signs appeared on indicators argue us to say that, the metal is on its way to achieve additional bearishness under the negative pressure of 61.8% Fibonacci level for the XA leg of our harmonic formation. The technical target of this potential downside correction resides between 1135.00 and 1132.00.

The trading range for today is among the key support at 1132.00 and key resistance now at 1183.00.

The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling gold from 1152.00 targeting 1135.00 and stop loss above 1166.00 might be appropriate.