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Hugo in HTO Trading,

GOLD: Pulling back from 2015 high

Since the beginning of the year the commodity gained more than 14.5% and rose 0.4% this past week in addition is in a bullish phase since the end of February 2016.

Last week the precious metal initially tried to rally but found enough selling pressure to reverse, however closed in the green but near the low of the week and managed to close within the previous week range, suggesting a weak bearish momentum.

Stochastic is showing crossed below the overbought zone and is displaying a bearish momentum although is still above the 50 mid line.

Expecting a downward move to a weekly support at 1,177.76 on a break below the previous week low at 1,207.68 (scenario 1) but a break above the previous week high at 1,244.10 may push up the precious metal to a weekly resistance at 1,279.90 (scenario 2).