Technical outlook and chart setups:
Gold dropped lower on Friday and has also made fresh lows today around $1,331.00 levels today, before pulling back higher. The metal has exceeded its drop more than our expectations but still keeps the wave structure bullish till prices stay above $1,330.00 level. Looking into the wave structure, the metal now seems to have terminated its wave 4 triangle consolidations at $1,331.00 level today. The metal should remain in control of bulls till prices stay above $1,330.00 level. It is hence recommended to remain long, with risk below $1,330.00 levels. Immediate resistance is seen at $1,3555.00/56.00 levels, while support is seen at $1,330.00 level. Please note that the metal looks to be into its last leg (wave 5) rally and it is expected to reverse lower from close to $1,380.00/90.00 levels going forward.
Trading recommendations:
Remain long, stop below $1,330.00, target is at $1,368.00 and $1,390.00
Good luck!
