Technical outlook:
Gold initial support is seen at $1,260 levels as depicted on the chart here, spreading fibonacci retracement through the recent swing between $1,195 and $1,295 levels respectively. Please note that it could also be possible that the metal takes a very shallow retracement with recent lows at $1,275/76 in place before rallying above $1,300 levels. In either case, whether from here or from $1,260 levels, the yellow metal looks to be poised to rally one more time and hit the next resistance around $1,310/15 levels before giving in to bears again. Please also note that prices are seen to be trading clearly in the buy zone of trend line support and a clear break would be required before it can be confirmed that a meaningful top is in place. Immediate price support is seen at $1232, followed by $1,195, while resistance is seen at $1,310/15 levels respectively.
Trading plan:
Remain long, stop @ 1,250 target @ 1,310/20
Good luck!
