Technical outlook and chart setups:
Gold reached yet another high in the area around the levels of $1,214.00/15.00 yesterday before pulling back. The metal is expected to face resistance near the current levels and should be producing a meaningful retracement towards the levels of $1,140.00/50.00. Bulls have already taken out an intermediary resistance level of $1,191.00 earlier, and a pullback is likely to take place soon. It is recommended to remain flat for now and await confirmation of a bearish reversal to initiate short positions again. Immediate interim resistance is seen at $1,214.00/15.00, while support is seen at $1,180.00. Please note that the metal is expected to drop to the levels of $1,150.00/40.00, the backside of the resistance trend line.
Trading recommendations:
Remain flat for now. Look for an opportunity to enter short positions again.
Good luck!
