Technical outlook and chart setups:
Gold is seen to be trading at $1,318.00/19.00 levels at the moment, after having hit lows at $1,311.500 yesterday. Please note that the metal continues trading/drifting sideways in a tight range between $1,315.00 and $1.323.00 levels respectively. The yellow metal might still unfold a countertrend rally towards $1,350.00/60.00 levels going forward, but needs to at least break above $1,330.00 levels to confirm. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is an impulse (5 waves), and hence a countertrend rally is most probable to unfold. Bulls would want to remain in control till prices stay above $1,310.00 levels going forward. Please also note that the metal might drop to $1,305.00/07.00 levels, at the backdrop of the Fed event lined up today, before reversing. It is hence recommended to remain long (aggressive trade setup) for now with risk below $1,300.00 levels. Immediate support is seen at $1,310.00 levels, while resistance is at $1,334.00 levels respectively.
Trading recommendations:
Remain long, stop below $1,300.00, targeting $1,350.00.
Good luck!
