Morning Report

Gold settled in areas below 1656.00, which triggered more downside movements yesterday. Currently, both of the 0-5 harmonic patterns are still possible, but the level of 1624.00 and most importantly 1598.00 could specify whether the metal will rebound to the upside or it will continue the downside movement. In general, we expect gold to gain positive momentum and incline again today.

The trading range for today is among the key support at 1590.00 and key resistance now at 1700.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

***New York Candlesticks***

Previous Report

Weekly Report

 

Support
1638.00
1629.00
1624.00
1610.00
1598.00

 

Resistance
1656.00
1662.00
1673.00
1681.00
1688.00

 

Recommendation
Based on the charts and explanations above our opinion is buying gold around 1624.00, targeting 1656.00, 1688.00 and 1694.00 and stop loss with 4-hour closing below 1598.00 might be appropriate.