Technical outlook and chart setups:
Gold is seen to be trading around the $1,173.00 levels for now and looking to correct further before resuming rally. The metal has stalled at the Fibonacci 0.618 resistance level of the earlier drop from the $1,230.00 levels through $1,080.00. Furthermore, the rally from the $1,080.00 levels remains corrective in wave counts. The metal needs to break the $1,200.00 levels at least to confirm a reversal. It is hence recommended to exit long positions for now and remain flat. Immediate support is seen at the $1,140.00/50.00 levels, followed by $1,100.00 and lower, while resistance is seen at the $1,230.00 levels and higher.
Trading recommendations:
Exit long positions and remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com