The daily chart explains the reason of yesterday's incline since Stochastic has overlapped positively but the major bearish trend remains intact. The harmonic formation is still in favor as the metal is still stable below SMA 20 and SMA 50 over daily basis. Thus, the CD leg of this suggested harmonic structure is still in progress, which offers the probability of touching 1322.00 zones and may be 1298.00 to be completed. A break of 1360.00 will confirm the bearish direction, while areas of 1395.00 should protect this scenario.
The trading range for today is among the key support at 1320.00 and key resistance now at 1406.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.
Weekly ReportSupportResistanceRecommendationBased on the charts and explanations above our opinion is, selling gold around 1376.00 targeting 1320.00 and stop loss with a four hour closing above1395.00 might be appropriate.