Technical outlook:
Gold had reached up to $1,736.00 levels intraday, before pulling back lower again. The yellow metal is seen to be trading around $1,731.00 levels at this point in writing and is expected to continue dropping lower towards $1,626.00 and further. Please note the fibonacci 0.786 retracement of previous drop has been reached and a bearish reaction should be underway from current levels. Immediate resistance is seen at $1,747, while support comes in around $1,704 respectively. A break below $1704 and $1,680 levels would confirm a bearish reversal towards $1,625 and $1,580 as highlighted on the chart view here. On the flip side, if Gold prices manage to break above $1,747, it would nullify the recent bearish structure. But it should be noted that upside remains limited and one should avoid taking long positions.
Trading plan:
Remain short with stop above $1,747, target is $1,625 and lower.
Good luck!
