Technical outlook and chart setups:
Gold has dropped below our expectations towards $1,198.00 levels yesterday. Please note that the metal is at a confluence of fibonacci 0.786 support and back side of the resistance line (that is support now). A bullish reversal here is still expected and it is recommended to hold long positions it taken yesterday, risk remains below $1,183.00. Support is seen at $1,183.00, while resistance is seen at $1,235.00, followed by $1,255.00 (interim), $1,275.00 and higher respectively. It looks like the pullback from $1,255.00 is over and prices could turn higher from here on.
Remain long, stop at $1,179.00, target is open.
The material has been provided by InstaForex Company – www.instaforex.com