Technical outlook and chart setups:
Gold has hit the fibonacci 0.382 ($1,255.00) resistance level of the fall from $1,345.00 to $1,283.00 levels, as seen here. It remains quite possible that the metal retraces from here towards $1,210 levels before extending its rally towards $1,270.00/80.00 levels or more. Resistance is seen at $1,255.00 (interim), followed by $1,275.00, $1,295.00 and higher respectively, while support is seen at $1,210.00, followed by $1,183.00 and lower respectively. An aggressive trade strategy could be to remain short for now, risk remains above $1,255.00; while a conservative approach could be to wait for a dip into $1,210.00 levels before getting long. Please note that if bulls manage to get past $1,255.00 levels now, the rally could further extend into the $1,280.00's.
Trading recommendations:
Remain short, stop at $1,259.50, target is $1,210.00 OR Remain flat and wait to go long at $1,210.00.
Good luck!
