Technical outlook and chart setups:
Gold is trading at $1,216.00/17.00 now after pulling back from $1,222.00. Bears are expected to remain in control until prices stay broadly below $1,240.00. The yellow metal has hit Fibonacci 0.618 retracement of a drop from $1,235.00 to $1,203.00 as depicted in the chart above. Furthermore, a bearish evening star candlestick pattern has also appeared on the hourly chart. The metal is hence expected to continue dropping lower towards the level of $1,180.00 at least. It is hence recommended to remain short now with risk at $1,230.00. Immediate resistance is seen at $1,235.00, while support is found at $1,190.00.
Trading recommendations:
Remain short with stop at $1,235.00, a target is at $1,290.00 and $1,280.00.
Good luck!
