Technical outlook and chart setups:
Gold has dropped into the one year support region around $1,180.00/85.00 levels today. The metal is trading at $1,189.00/90.00 at the moment and a bullish reversal could be expected here. Please note that the support line connecting the lows of June 2013 and Dec 2013 is being re-tested at the moment. A bullish reversal here on the daily/weekly chart, could be extremely favorable for the metal and the coming rally could break out of $1,350.00 levels in the weeks to come. On the flip side, a break below the trend line support, could bring prices as low as $1,090.00 and $1,030.00/50.00 levels. The weekly chart indicates that support is just around the corner at $1,180.00/85.00 while resistance is seen at $1,320.00/30.00 levels.
Trading recommendations:
Remain flat for now. Watch out for a reaction around the trend line support.
Good luck!
