Gold moved higher supported by the breach of the main resistance for the downside move and settled above 23.6% correction to reach 38.2% correction around 1680.00 per ounce. The upside move seen increases the possibility of forming a 5-0 harmonic pattern and gold is currently constructing the CD leg; eyes next are on 1700.00 as the upside move extends. The metal should breach 1680.00 to extend the upside move and negate the effect of the negativity on momentum indicators.
The trading range for today is among the key support at 1638.00 and key resistance now at 1700.00.
The short-term trend is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
Weekly ReportSupport1666.001662.001653.001645.001638.00Resistance1680.001690.001694.001700.001703.00RecommendationBased on the charts and explanations above our opinion is buying gold above 1666.00 and take profit at 1681.00, 1694.00, and 1700.00 and stop loss with four-hour closing below 1650.00 might be appropriate