Technical outlook and chart setups:
Gold is seen to be pulling back at the moment trading at $1,225.00 level. The metal had touched $1,237.00 level yesterday, and is now expected to retrace lower towards $1,205.00 level before resuming the rally. Immediate downside target for bears would be around $1,217.00/18.00 level, which is also Fibonacci 0.382 support for rally between $1,183.00 and $1,237.00 respectively. Good support is seen at $1,205.00, followed by $1,183.00 and lower while resistance is around $1,240.00, followed by $1,275.00 and higher respectively. It is recommended to initiate long positions at lower levels again.
Trading recommendations:
Remain flat for now. Look to buy around $1,205.00 levels.
Good luck!
