Technical outlook and chart setups:
Gold has been drifting sideways in a tight range since last few trading sessions. The metal is trading around $1,200.00 region at the moment but it could still be preparing for a dip towards $1,172.00/75.00 levels before rallying further up. Please also note that there is a strong convergence at $1,172.00 level, and a bullish bounce from there should be aggressively bought. Immediate support is seen at $1,170.00, followed by $1,140.00, $1,130.00 and lower while resistance is seen at $1,220.00 (interim), followed by $1,235.00, $1,255.00 and higher respectively.
Trading recommendations:
Initiate long positions around $1,172.00, stop at $1,125.00, the target is open.
Good luck!
