Technical outlook and chart setups:
Gold is trading around the levels of $1,089.80/90 after reaching a lows of $1,085.00. The yellow metal might drop to the level of $1,080.50, which is Fibonacci 0.618 support as depicted in the chart before rallying further towards fresh highs. Please note that the upside extensions remain intact towards $1,125.00 and $1,136.00. Immediate support is seen at the level of $1,081.50 followed by $1,071.00 and lower, while resistance is seen at $1,108.00 followed by $1,113.00 and higher. Bulls should be poised to remain in control until prices stay broadly above $1,071.00.
Trading recommendations:
Remain 50% long now around $1,081.50/84.50, stop is at $1,170.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com