Morning Report

Gold closed positively above 61.8% Fibonacci level for the descending rally from 1265.00 to 1156.00 at 1224.00. As we discussed before we looked at the aforesaid decline as the first wave and that is why we are talking about the expected correctional levels. We all know that the second wave could retrace from 38.2% to 76.4% Fibonacci from the previous IM wave. In our case, 1239.00 represents 76.4%, which is too close to the current price and whilst the negative signs continue appearing on the technical indicators. Hence, our outlook is neutral until we see how gold will behave between 1224.00 and 1239.00.

The trading range for today is among the key support at 1203.00 and key resistance now at 1255.00.

The general trend over short term basis is to the upside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, staying aside until a clear sign appears between 1224.00 and 1239.00 levels to pinpoint the upcoming big move.