Gold: Overbought And In Need Of Short-Term Correction

London (Jan 28)  Gold is overbought as we warned yesterday and in need of a short-term correction. First support at 1115/14 could hold the downside initially this morning and we could bounce to 1119/1120. However, a break lower perhaps later in the day is certainly possible and targets an excellent buying opportunity at 1109/08. A low for the day is expected but longs need stops below 1105.

Minor resistance at 1119/20 but above here could target strong resistance at 1129/30 in overbought conditions. This should be an excellent selling opportunity with stops above 1134.