FX.co ★ Gold prepares for counter rally. Look to buy around 1,300.00

Technical outlook and chart setups:

The yellow metal has seemingly bounced just shy of the 1,292/93 levels as depicted here. This level is re-enforced by the 0.5% Fibonacci retracement of the entire run up rally from 600-700 levels in 2008 to 1,930 level in 2012; and the 61.8% Fibonacci extension of the fall between 1,930 and 1,520/30. It is recommended to wait for clear buy signals once prices reach there, before buying. A counter trend rally towards the past support turned resistance at 1,520/30 levels should materialize soon enough, may be now or from 1,290.00 level. It is good to wait for prices to find support at defined Fibonacci extensions. Smaller timeframes are showing signs of a rally building up but it is still too early to predict the same. Bottom line: Prepare to buy around 1,300.00 if reached.

Trading recommendations:

Flat for now. Buy around 1,300.00.

Good luck!