Technical outlook and chart setups:
Gold has touched $1,320.00 level today before dropping lower in a snap. The metal is trading at $1,311.50 level at this moment of writing, after hitting $1,307.00 lows. The metal should be looking to rally from the current levels and bulls should remain in control till prices stay above $1,306.00 levels going forward. Please note that the metal is testing a back side of a resistance trend line which should act as support now. The wave structure still looks constructive for bulls, with potential waves (1) and (2) having formed already. It is hence recommended to remain long with risk at $1,302.00 level for now. Potential still remains for bulls to take control from here and push prices towards $1,330.00 and $1,340.00 levels at least. 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 now, stop at below $1,302.00; a target is $1,340.00 at least.
Good luck!
