Technical outlook and chart setups:
Gold is trading at $1,225.00/26.00 levels at the moment, looking to drop lower towards $1,190.00 levels from here. Please note that the metal is at the Fibonacci 0.618 retracement of the drop from $1,240.00 through $1,208.00 levels respectively. Furthermore, the resistance trend line is also passing through the same levels as depicted here. The most likely direction from the current levels is lower towards $1,190.00. It is hence recommended to remain short for now, with risk at $1,235.00 levels. Immediate resistance is seen at $1,235.00 levels, while support is at $1,207.00 levels respectively. Bears are expected to remain in control till prices stay below $1,235.00 levels.
Trading recommendations:
Remain short for now, stop at $1,235.00 target is $1,190.00
Good luck!
