Technical outlook:
Gold seems to have hit a major resistance around $1,747 levels. The yellow metal has been dropping lower since then and has print an intraday low at $1,657 levels today. It is seen to be trading around $1,671/72 levels at this point in writing and might resume lower towards $1,639 levels as depicted on the hourly chart here. Please note that immediate support is seen at $1,639, while resistance is at $1,730/40 levels respectively. A break below $1,639 would confirm that the trend has reversed and that Gold can be expected to produce a series of lower lows and lower highs going forward. On the flip side, if prices manage to rally above $1,680 levels then it could test $1,710/15 levels before reversing lower again. In both cases, Gold remains to be sold on rallies.
Trading plan:
Remain short and add further around $1710/15, stop above $1747, target is open.
Good luck!
