Technical outlook and chart setups:
Gold has been retracing since hitting highs at $1,220.00 last week. The metal has reached Fibonacci 0.50 support levels at $1,180.00 and a drop lower would move prices to the level of $1,172.00 which is Fibonacci 0.618 support as well. Please note that trend-line resistance turned support is also seen at $1,170.00/72.00. It is recommended to initiate long positions around the levels of $1,170.00/72.00, on a bullish bounce. Immediate support is seen at $1,172.00 followed by $1,160.00, $1,140.00, and lower while resistance is seen at $1,223.00 and higher respectively. Bulls are poised to remain in control until prices stay above $1,140.00.
Flat for now, look to buy around $1,170.00
The material has been provided by InstaForex Company – www.instaforex.com