Technical outlook and chart setups:
Gold inched higher towards $1,223.00 levels as expected, before pulling back lower today. The metal is testing a resistance trendline at current levels, as seen on the daily chart here. At the moment, bulls are under control and it is recommended to hold long positions taken earlier. The metal could possibly retrace into $1,190.00/1,200.00 region before resuming the rally again. Immediate support is seen at $1,200.00, followed by $1,180.00/90.00, $1,170.00 and lower while resistance is seen at $1,238.00/40.00 (interim), followed by $1,240.00/50, $1,280.00 and higher respectively. Bulls are expected to remain in control as long as prices remain above $1,170.00 levels.
Trading recommendations:
Remain long for now, stop at $1,160.00, target is open.
Good luck!
