Technical outlook and chart setups:
Gold is trading at $1,268.00/69.00 levels for now after hitting $1,279.00 levels last week. The yellow metal is setting up for a meaningful retracement that extends to $1,190.00 levels at least. As depicted here, the yellow metal is expected to remain under control of bears until prices stay below $1,279.00 levels broadly. It is hence recommended to remain short now with risk above $1,279.00 levels. Immediate resistance is seen at $1,279.00 levels (interim), while support is seen at $1,225.00 levels. Please note that the metal may also retrace lower towards $1,135.00 levels before pushing higher again.
Trading recommendations:
Remain short now, stop at $1,281.50, target is $1,190.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com