Technical outlook and chart setups:
Gold is seen to be retracing lower towards the levels of $1,235.00 for now. The metal may be supported at the current levels and then continue higher above $1,245.00 again. On the flip side, a drop below $1,228.00 could find support at $1,221.00, which is also 60% of the rally between $1,170.00 to $1,307.00. It is recommended to remain long for now and also look to add further on dips with risk below the levels of $1,170.00. Immediate support is seen at $1,220.00 (interim) followed by $1,205, $1,170.00 and lower, while resistance is seen at $1,285.00 (interim) followed by $1,307.00, $1,340.00 levels and higher, respectively. Bulls would remain in control untill the prices stay above $1,170.00.
Trading recommendations:
Remain long, stop at $1,170, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
