If we look at the metal from a classical point of view, we will see that it is still moving within the upside channel despite of yesterday's decline. SMA 50 added strength for this channel and at the same time, Stochastic started to show the ability for achieving a positive crossover. RSI also got rid of bearish momentum and thuswe might witness an upside recovery over intraday basis. A breakout above 1425.00 is essential to confirm this bullish scenario. Conversely, a break of 1410.00-1406.00 will weaken chances for achieving the bullish direction over intraday basis.
The trading range for today is among the key support at 1388.00 and key resistance now at 1474.00.
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 ReportSupport1415.001406.001402.001395.001388.00Resistance1425.001430.001438.001445.001449.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1415.00 targeting 1455.00 and stop loss with 1410.00 might be appropriate.