Morning Report

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Gold slipped respecting the harmonic scenario suggested on Friday since the imperfection of the correction for XA leg couldn't damage the bearish harmonic Gartley pattern. Now, gold is trading below 38.2% of CD leg clarifying that the bearishness will continue over intraday basis towards 61.8% level at 1502.00. As far as trading remains below 1537.00, the bearishness will be in favor, while areas of 1549.00 should hold to protect the scenario.

The trading range for today is among the key support at 1494.00 and key resistance now at 1549.00.

The general trend over the short term basis is to the upside, targeting $ 1600.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.

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Eye On Gold

RecommendationBased on the charts and explanations above our opinion is, selling gold around 1523.00 targeting 1502.00 and stop loss with a daily closing above 1537.00 might be appropriate.