Technical outlook and chart setups:
1. Gold pulls back as expected and discussed yesterday from sub $1,310.00/15.00 levels. The metal is seen trading close to $1,290.00 levels at the moment and is now expected to bounce higher. Please note that fibonacci 0.618 support is also passing through $1,288.00/90.00 levels. Recommendations are to initiate long positions now, risk remains at $1,270.00.
2. Support is at $1,270.00 (interim), followed by $1,230.00/40.00, $1,210.00 and lower, while resistance is at $1,330.00, followed by $1,350.00/60.00, $1,388.00 respectively.
3. The structure indicates that Gold could potentially rally from current levels towards at least $1,330.00 levels. Furthermore a potential towards $1,360.00/70.00 also remains.
Trading recommendations:
Initiate long positions now, stop below $1,270.00, target is open.
Good luck!