Technical outlook and chart setups:
Gold is consolidating its drop from $1,262.00 levels at the moment. The metal is trading at $1,229.00 levels for now and seems to have completed its first leg down. The metal is expected to face resistance at $1,248.00 levels if intraday rallies materialize from here. Please note that fibonacci 0.618 resistance of the drop from $1,262.00 through $1,224.00 levels is also around $1,248.00/50.00 levels as depicted here. It is hence recommended to remain short for now and also look to add around $1.248.00 levels with risk above $1,262.00. Immediate resistance is seen at $1,260.00/62.00 levels, while support is seen through $1,214.00/15.00 levels respectively.
Trading recommendations:
Remain short now, also add further around $1,247.00 levels, stop at $1,265.00, target is $1,190.00.
Good luck!
