Technical outlook and chart setups:
Gold has pushed higher and is seen to be trading at $1,253.00 level at this moment. The rally is not expected to sustain for too long though and a bearish reversal seems to be imminent from here or around $1,260.00/65.00 levels. The metal is expected to face strong resistance around $1,260.00/65.00 levels with fibonacci 0.618 retracement and trend line resistance passing around the same levels. The counter trend rally that begun from $1,200.00 level earlier, also seems to be coming to an end. A bearish reversal should be expected soon and push prices lower towards $1,150 levels. Hence it is now recommended to consider taking short positions, with risk above $1,303.00 level. Immediate resistance is seen at $1,265.00 levels, while support is at $1,235.00 level respectively.
Trading recommendations:
Remain short now, stop above $1,303.00, a target is $1,150.00
Good luck!
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