Technical outlook and chart setups:
Gold is trading at $1,231.00/32.00 levels at this moment, preparing to drop lower towards $1,190.00 levels. Please note that intraday pullback rallies are possible but they should remain capped below $1,250.00/60.00 levels. Please note that pullbacks are shallow since downside pressure remains. If the metal slips below $1,220.00 levels from here, it could move directly towards $1,190.00 levels. Also note that the support trend line has been broken already and the same would provide strong resistance at $1,245.00/50.00 levels. It is recommended to remain short for now, with risk at $1,285.00/86.00 levels. Immediate resistance is seen at $1,260.00 levels, while support is seen $1,224.00 levels respectively.
Trading recommendations:
Remain short for now, stop at $1,285.00/86.00, target $1,190.00.
Good luck!
