Technical outlook and chart setups:
Gold is trading around $1,209.00/10.00 now after hitting highs around $1,263.00 last Friday. The yellow metal is trading around Fibonacci 0.618 support ($1,212.00) of a rally between $1,181.00 and $1,262.00. A drop below the levels of $1,080.00 would confirm that the yellow metal formed a meaningful top and should retrace lower towards $1,130.00 before rallying further. It is recommended to remain flat and wait for a confirmation to initiate short positions. Immediate interim resistance is seen at $1,245.00 followed by $1,262.00, while support is seen at $1,205.00.
Trading recommendations:
Remain flat looking for an opportunity to go short.
Good luck!
