Technical outlook and chart setups:
Gold has dropped lower again hitting a low of $1,076.00 in the early hours today. The yellow metal remains vulnerable to further bearish targets and there is no sign of a meaningful pullback. Please note that downside potential remains until at least $1,050.00 and $1,030.00 subsequently. It is hence recommended to remain flat for now and look for an opportunity to buy at lower levels. Immediate support is seen at $1,052.00 followed by $1,030.00 (past resistance turned support, year 2009) and lower while resistance is seen at $1,106.00 (interim) followed by $1,110.00 and higher respectively.
Trading recommendations:
Remain flat for now. Sell on intraday rallies through the level of $1,090.00.
Good luck!
