Technical outlook and chart setups:
Gold is seen to be trading at $1,254.00/55.00 levels for now, after reversing lower from $1,260.00 levels today. The yellow metal reversed from the Fibonacci 0.786 resistance of the drop from $1,270.00 and $1,227.00 levels respectively. The wave structure indicates that bears are expected to remain in control till prices stay below $1,270.00 levels. It is recommended to remain short for now, with risk above $1,270.00 levels at least. Immediate support is seen at $1,227.00 levels, while resistance is seen through $1,270.00 levels respectively. A drop below $1,223.00 levels would accelerate further downside towards $1,190.00 levels.
Trading recommendations:
Remain short, stop is at $1,270.00, target is $1,190.00
Good luck!
