Technical outlook and chart setups:
Gold is trading around the levels of $1,123.30 now and it is likely to face resistance here.The yellow metal is expected to produce an up garter and complete a corrective drop lower before rallying towards fresh highs. Also as seen on the daily chart, the metal is facing resistance around Fibonacci 50% levels of a drop between the levels of $1,192.00 and $1,046. It is hence recommended to initiate 50% short positions now with risk at $1,129.00. Immediate interim resistance is seen at $1,127.00/28.00, while support is seen at $1,108.50. Bears should remain poised to push lower until prices stay below $1,129.00.
Trading recommendations:
Remain short with stop at $1,129.00.
Good luck!
