Technical Outlook:
Gold might be heading lower towards $1450 and below provided prices stay below $1523 and $1535 levels. A corrective drop might be unfolding (A)-(B)-(C) from $1557/58 levels before the rally could resume any further. Immediate price resistance is at $1523 followed by $1557/58 levels and if the above structure remains in effect, the metal should stay below those levels. For those traders who are already short, the risk can be reduced to $1523 levels, while those who are wanting to enter fresh positions could wait for a pullback towards at least $1514/15 levels which is also the Fibonacci resistance of the drop between $1535 through $1580 levels respectively. Moreover, a push above $1523 would confirm that the corrective drop might be over and that prices are expected to head north. In either case, selling on rallies remains a favored strategy for now.
Trading plan:
Remain flat for now. Look to sell again around $1515 levels, stop above $1535, target is $1450
Good luck!
