Technical outlook and chart setups:
Gold is dropping below the level of $1,160.00 for now and could possibly test the $1,145.00 level before turning bullish again. The metal is trading lower than expected and is penetrating below the resistance turned support trend line. A quick bullish turn around would be required to ensure that the structure remains intact. Immediate support is seen at $1,145.00 followed by $1,130.00 while resistance is seen at $1,220.00, followed by $1,285.00 and higher respectively. A break below $1,130.00 could be extremely bearish and the yellow metal could drop towards the level of $1,030.00 before reversing.
Trading recommendations:
Remain long with stop at $1,130.00 OR Remain flat.
Good luck!
