Technical outlook and chart setups:
Gold continues to drift sideways for now, confined within the boundaries of support and resistance. The metal is seen to be trading around $1,330.00/31 levels at this moment, looking to drop lower towards $1,310.00/07.00 levels. Please note that the yellow metal seems to have terminated its last leg within the triangle consolidation at $1,338.00 levels overnight (seen here as a spike). If the above wave count holds to be true, we can see gold prices dropping below $1,320.00 levels very soon and completing an impulse wave (5 waves from $1,375.00 levels). The metal is then expected to produce a countertrend rally, giving opportunities to go short again. It is hence recommended to remain short for now, with risk above $1,347.00 levels. Immediate support is seen at $1,320.00 levels, while resistance is at $1,345.00 levels. The metal has already drifted lower towards $1,329.00 levels now and should drop towards the channel support line.
Trading recommendations:
Remain short for now, stop above $1,347.00, and target $1,310.00/05.00.
Good luck!
