Technical outlook and chart setups:
Gold looks to resume rally after bouncing off from the levels of $1,230.00 yesterday. The metal could still drop towards the levels of $1,221.00 before rallying again. Please note that the Fibonacci 0.618 support is also falling at $1,221.00 and it remains a good buy if prices manage to reach there. Therefore, it is recommended to remain long for now and also to look to add lower for an extended rally towards the levels of $1,340.00. Immediate support is seen at $1,221.00 levels followed by $1,205.00 and lower, while resistance is seen at $1,285.00 followed by $1,307.00 and higher, respectively. Bulls should be poised to resume rally from here.
Trading recommendations:
Remain long; stop is at $1,170.00; target is open.
Good luck!
