Gold Morning Technical Report 31/10/2014

Gold dropped sharply today and yesterday, and the expected downside move took the price to trade around the support 1175.40. The metal is currently targeting 113% correction at 1155.75 the 1135.00 and 1227.00 showing above.

From the upside, trading below 1211.90 keeps the downside move valid, while stabilizing below 1205.00 is required today to keep the negative pressure valid without the need for strong bullish corrections. Technical indicators support the possibility of extending the downside move due to trading in a bearish bias.