Technical outlook and chart setups:
Gold rallied and hit resistance at $1,257.00/58.00 levels yesterday before pulling back lower. The metal is trading at $1,253.00 at the moment, and is expected to drift lower at least towards $1,190.00 levels. Please note that the metal is expected to retrace the entire rally from $1,046.00 through $1,283.50 levels as depicted here (blue color). Furthermore, a fibonacci convergence is also seen at $1,160.00 levels, where the countertrend extensions meet with retracement (red color). It is hence recommended to remain short for now with risk above $1,270.00 levels. Immediate resistance is seen at $1,270.00 levels, while support is at $1,190.00 levels respectively.
Trading recommendations:
Remain short for now, stop at $1,270.00, target $1,190.00 and $1,160.00.
Good luck!
