Technical outlook and chart setups:
Gold is trading lower at the levels of $1,257.00/58.00 now. It is expected to make a counter-trend rally towards the levels of $1,268.00/70.00 at least. The metal should then resume its downward journey towards $1,190.00. Please note that intraday rallies should remain well capped below $1,278.00 levels, and the metal should face stiff resistance around fibonacci 0.618 levels at $1,267.00/68.00. It is hence recommended to remain short from yesterday, with risk above $1,279.00 for now. Immediate support is seen at the levels of $1,240.00, while resistance is seen at $1,278.00. It looks like the metal has resumed its short-term downtrend towards $1,190.00 and subsequently $1,135.00.
Trading recommendations:
Remain short for now with stop at $1,282.00, a target is open.
Good luck!
