The precious metal has had difficulty breaking through the 1910 ceiling and the 1891 floor, witnessing price to float between these two levels since last week. Short while after U.S. open yesterday, gold managed to jump the cliff and hit to the lowest record in October so far to 1860. This was due to a sign of economic recovery in the U.S. shown by two major indicator, Q/Q Advance GDP and Unemployment Claims hit gold with outstanding figure than expected.

H4 chart shows the bear is losing momentum giving rise of a reverse trend to allow the bulls to takeover. Head and shoulder pattern mentioned to form last week proved itself and performed a deep-dive. However, the reverse pattern should embrace a retracement before it shoots off north again, expect price to pullback to 1871.18 or 1869 then resume the greenlight. Traders should pay extra attention to the election which might bring huge impact to the market.

Opportunity to enter buy if price retrace to 1871 level, with stop loss in place at 1860 and take profit at 1884.

Analyzed by: Mr. Ronald Wu,Independent Analyst