Technical outlook:
Gold remains vulnerable to resume lower again, until prices stay below $1,703 resistance. The recent boundary that is being worked upon is between $1,703 and $1,450 respectively. Please note that the yellow metal seems to have completed its counter trend rally as well towards the $1,620/25 levels. In fact, Gold has almost tested the fibonacci 0.786 retracement around $1,649 levels last week and bears should regain control any moment from here. On the flip side, only a break above $1,703 would nullify the above bearish view and continue further higher towards $1,750. Having said that, the probability for a break above $1,703 remains extremely low and traders must be looking to sell the counter trend rally. A break below the counter trend line shown here will accelerate downside and push prices towards $1,450 levels, going forward.
Trading plan:
Sell @ 1620/30 stop @ 1703. target is below $1450.
Good luck!
