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Hugo in HTO Trading,

Gold: Again trading near a turning point

Since the beginning of the year the commodity gained in excess of 4.5% however this past week fell more than 2.0% in addition the precious metal made a phase change, shifting from  a recovery to a bearish phase.

Last week the precious metal fell with a wide range and closed near the low of the week, in addition managed to close below the previous week low, which suggests a strong bearish momentum.

The stochastic is showing a strong bearish momentum and crossed below the overbought zone.

Expecting a downward move to a weekly support at 1,131.66 on a break below the previous week low at 1,194.93 (scenario 1) although a bounce from the key level at 1,199.36 may push back up the precious metal to another key level at 1,242.30 (scenario 2).