Technical outlook and chart setups:
Gold has retraced lower from yesterday and is seen to be trading at $1,133.00/34.00 levels for now. The yellow metal might push lower one last time before resuming its uptrend. The metal has already retraced up to 75% of its rally between $1,046.00 through $1,375.00 levels, when it had made lows last week. One should wait for yet another bottom or a test of existing low at $1,122.00 levels before looking to initiate fresh long positions. Ideally, a push above $1,165.00 levels would confirm that the metal is ready to push through higher levels. The wave structure also reveals that the recent rally from $1,122.00 through $1,142.00 levels looks to be corrective and hence the metal could drop one last time before turning higher. Immediate support is seen at $1,122.00 levels, while resistance is seen at $1,165.00 levels respectively.
Trading recommendations:
Remain flat for now and allow a test of recent lows to initiate long positions.
Good luck!
