Gold (08.10.2013) traded lower as per last report dated 27.09.2013. However we witness a sharp bounce from $1280 area.
Now gold is trading around $1326 & as we can see on charts, gold is reaching to the topline of current descending channel. This area also in combination of 50% feb correction level & a parallel minor resistance. However a positive candlestick pattern suggest for more upside but the ongoing long term scenario & continue weakness on indicators suggest for a possible downside move again. On the fundamental side, any positive tone on ‘obamacare’ from US will generate panic selling in gold.
Based on above studies, we will prefer to sell gold for downside targets around $1304 & then $1280. Only a day close above $1337 will neglect the forecast.