Gold Morning Technical Report 2/9/2014

The metal failed to breach 1292.65 levels in an attempt to rise yesterday as showing on graph, which pushed the price to the downside again. But the downside move remained limited around 61.8% correction at 1280.25 levels. Linear Regression Indicator 34 became negative, AROON is negative and MACD failed to remain positive. Therefore, the negative possibility is available.

Risk/Reward Ratios are inappropriate because the metal is approaching significant support close to the referred to 1280.25. The price is approaching the key support showing on graph which make it important not to bet of a downside move before confirming its break. Hence, we remain neutral today also waiting for new confirmation signals.