Technical outlook and chart setups:
Gold has dropped lower as discussed and expected, and is trading at $1,218.00 levels at the moment. The yellow metal may produce intraday rallies but those should remain well capped below $1,230.00/35.00 levels. Please note that $1,230.00/35.00 is also the past support turned resistance now, as shown here. Also note that the yellow metal is now well positioned to drop lower towards $1,190.00 levels at least as shown as red lines on the chart view here. It is hence recommended to remain short for now, and bring down risk to $1,245.00 levels. Immediate resistance is now around $1,235.00 levels, while support is at $1,190.00 levels respectively.
Trading recommendations:
Remain short for now, stop at $1,245.00, target $1,190.00.
Good luck!
