Technical outlook:
Gold remain vulnerable towards yet another low around $1,650 levels at least in the next few trading sessions. The yellow metal had managed to break above its immediate trend line resistance last week and reached up to $1,758 mark. Please note it was close to fibonacci 0.382 retracement of the drop between $1,876 and $1,676 respectively. A bearish bounce was expected and the metal has indeed turned lower.
Gold is currently seen to be trading close to $1,728 levels as bulls are looking to produce a counter trend rally towards $1,745/48 levels at least in the near term/intraday. Immediate resistance is seen towards $1,758, followed by $1,820 and higher; while support comes in around $1,678 levels respectively. The yellow metal might be on its way to produce a gartley towards $1,710 levels in the next 1-2 trading sessions.
If bulls are back around $1,710 zone, Gold might resume its rally towards $1,770/1,800 mark before turning lower again. The trade direction is down in the short term and then up towards $1,770/80 levels. Bottom line is that prices should find support around $1,710. A failure to do so will open doors towards $1,650 and further.
Trading plan:
Remain short, add more @ 1,770/80, stop @ 1,875, target is 1,650 and 1,550
Good luck!
