Technical outlook and chart setups:
Gold dropped lower to the level of $1,229.00, as discussed and expected earlier. The yellow metal has also broken below the triangle support trend line as well, and should be poised to drop lower to $1,190.00 at least. Also please note that the rally from $1,046.00 through $1,283.00 can be retraced towards a major Fibonacci support of $1,140.00 (not depicted here). But that drop could occur in 3 waves, the first of which is under way and poised to hit $1,190.00 soon. It is hence recommended to remain short with risk at $1,086.00. Immediate resistance is now seen at $1,261.00, while support is found at $1,224.00.
Trading recommendations:
Remain short for now, stop is at $1,086.00, a target at least $1,190.00.
Good luck!
