Technical outlook and chart setups:
Gold might have begun retracement of the rally made from $1,170.00 to $1,307.00 levels lately. Please note that the metal has bounced off from a support trend line extended from $1, 770.00, as shown here. A drop below $1,280.00 levels again would confirm that Gold is set to correct itself until $1,250.00 levels at least. It is recommended to initiate long positions again on a drop towards $1,250.00 levels. On the flip side, a push above $1,305.00/07.00 levels would challenge $1,340.00 levels on the higher side. Immediate support is at $1,270.00 levels, followed by $1,250.00 and lower while resistance is seen at $1,305.00/07.00 levels, followed by $1,340.00 and higher respectively.
Trading recommendations:
Buy around $1,250.00 levels.
Good luck!
