Technical Outlook and Chart Setups:
The yellow metal seems to be testing resistance again. A clear break of 1775.00 level here would take gold to the resistance at 1800.00. But we favour downside probability from here on, since the upside remains capped and limited after last weeks' rally. We recommend traders to be more careful and restrain from buying at current levels. It is better to watch out for sell signals on 1H and 4H charts to go short from here. As depicted above, we favour downside extensions at least till 1750.00 level and further down.
Trading Recommendations:
Flat for now. Prepare to go short again.
Good Luck!
