Technical outlook and chart setups:
Gold has dropped around the levels of $1,250.00 as expected and discussed earlier and probably resumed pullback. It was recommended to initiate long positions around the levels of $1,250.00, and further longs can also be added here. Please note that the metal has hit support at Fibonacci 0.382 levels and that it can continue rallying to fresh highs from here. However, a break below the levels of $1,250.00 would further test $1,220.00 before resuming rally. Immediate support is seen at $1,225.00 followed by $1,205.00 and lower while resistance is seen at the levels of $1,295.00 followed by $1,307.00 and higher, respectively. Bulls should remain in control untill prices remain above the levels of $1,170.00.
Trading recommendations:
Initiate fresh long positions here, stop is at $1,245.00, target is $1,340.00/50.00.
Good luck!
