Technical outlook and chart setups:
Gold has tested $1,200.00/01.00 twice earlier and is trading around the level of $1,204.00 now. The metal has bounced off around fibonacci 0.50% support region but still has potential to drop towards $1,195.00/96 before resuming its rally. Also, note that past resistance turned out to be support and fibonacci 0.618 support falls to the area around $1,195.00/96.00. It is hence recommended to remain long with risk below $1,190.00 now allowing space for further correction. Immediate support is seen at $1,200.00 (interim) followed by $1,195.00, $1,180.00, and lower. Resistance is seen at the level of $1,225.00 followed by $1,235.00/40.00 and higher respectively.
Remain long for now, stop at $1,190.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com