Technical outlook and chart setups:
Gold has been drifting sideways since hitting $1,343.00 levels last week and is trading at $1,337.00 levels for now. Please note that a push higher above $1,342.00 and subsequently above $1,352.00 levels would change the structure. At the moment, the wave structure favors bears with $1,343.00 levels being intact. It is possible for gold to push higher towards $1,340.00/44.00 levels before resuming the downtrend. The metal has reacted at the Fibonacci 0.786 resistance of its earlier drop. It is hence recommended to remain short for now with risk above $1,352.00 levels. Immediate resistance is seen at $1,345.00 levels, while support is at $1,330.00 levels. Bears are expected to take control back from $1,340.00 levels going forward.
Trading recommendations:
Please remain short for now, stop is above $1,355.00, target is open.
Good luck!
