GOLD broke out its steady movement yesterday with a high volatility and after than turned into a silenced movement again. Close to 200Hrs EMA and moving around it. Currently it is at 1195 and the 1199.70 – 1202 band is still critical as we said yesterday. As long as GOLD can not get over this band, bearish pressure would be more strong day by day. So buyers would be careful below this level. In order to be in SELL position, GOLD should move below 200 Hrs EMA for a while as we said yesterday. Today we have the same view.
Also in the last couple of hours GOLD is getting stucked in a triangle. So aggressive movement may be expected within a couple of hours.
If GOLD gets over 1199.70 – 1202 ,as you see on the 4Hrs chart below, it will try to get over 1204 which is the upper level of its short term down trend. Reversal is more possible but if it breaks, 1225 would be the target.
So as a brief, do not BUY before 1202 is passed. Don’t trade until it gets out of triangle. Get your positions after than.