Technical outlook and chart setups:
Gold is trading at $1,206.50 now looking for an opportunity to push higher towards $1,233.00/35.00. The metal could face stiff resistance around $1,235.00 and produce a bearish reversal. The yellow metal hit interim lows just around $1,090.00 yesterday as seen on the hourly chart. The metal seeks to complete its first leg lower between $1,263.00 and $1,090.00. The metal is expected to rally through $1,233.00/35.00 before resuming its third leg lower towards $1,146.00. It is hence recommended to go long now with risk below the levels of $1,090.00. Immediate interim support is seen at $1,090.00, while resistance is found at $1,246.00. We expect a short-term rally before a bearish reversal.
Trading recommendations:
Stay long with stop below $1,090.00, a target is at $1,233.00.
Good luck!
