Technical outlook and chart setups:
Gold has managed to push through the $1,170.00 levels after having formed lows at the $1,075.00 levels earlier. The yellow metal is stalling at a resistance line, Fibonacci 0.618 (of the drop from $1,203.00 to $1,075.00) and a past support turned resistance zone at current levels. It is hence recommended to initiate fresh short positions now, with risk around the $1,180.00 levels. Please also note that the rally from the $1,075.00 levels, should at least be retraced towards the $1,110.00 levels for the rally to continue. Immediate support is seen at the $1,110.00 levels followed by $1,090.00, $1,075.00 and lower, while resistance is seen at the $1,175.00 levels followed by $1,180.00 and higher respectively.
Trading recommendations:
Initiate short positions, stop is at $1,180.00, target is open.
Good luck!
