XAU/USD overall trend remains bearish without any obvious signs of a potential reversal to an upside. Gold broke below 161.8% Fibs support (1274) and found resistance there. Although correctional move up could extend, the probability of a further downtrend from the current level (1262) remains high.
Consider selling Gold while price is near 1260. For the shorter term trades stop loss should be very tight at 1265. For the longer term trades stop should be just above the 1300 psychological resistance. The first downside target is 261.8% (1225) and second one is at 361.8% (1177) Fibonacci retracement.
Support: 1225, 1177
Resistance: 1274, 1303
