Technical outlook and chart setups:
Gold has now retraced towards $1,265.00 level as expected and discussed earlier and should resume the rally. The metal is trading at $1,265.00 level for now and should be looking to push higher towards $1,286.00/1303.00 levels from here. Also note that it is bouncing off the interim trend line support as depicted here. Please note that the metal should push through the past support turned resistance zone around $1,304.00 level as discussed earlier. The wave structure also indicates that the counter trend rally that began from $1,241.00 level is expected to terminate around $1,304.00 level. It is recommended to remain flat now and look to sell around $1,303.00/10.00 levels again, while aggressive traders should remain long with risk below $1,260.00. Immediate resistance is now seen at $1,304.00/10.00 levels, while support is at $1,260.00 level respectively.
Trading recommendations:
Aggressive traders remain long now with stop at $1,260.00 level, targeting $1,303.00. Conservative trade setup is to go short at higher levels.
Good luck!
