Technical outlook and chart setups:
1. Gold seems to have reversed just ahead of major resistance at $1,361.00 yesterday. The metal has produced an engulfing bearish candle, hinting that the next move is lower. It is recommended to initiate short positions around $1,345.00/50.00, risk remains at $1,362.00.
2. Immediate resistance is at $1,361.00, followed by $1,375.00, while supports are spread through $1,320.00, followed by $1,280.00/70, $1,230.00/20.00 and lower respectively.
3. The structure indicates that a meaningful retracement could be possible now. Bears seem to be in control at the moment and hence intraday rallies should be sold. $1,320.00 remains of interest for the next bearish leg to continue further.
Trading recommendations:
Sell around $1,345.00/50.00, stop is at $1,362.50, target is open.
Good luck!
