FX.co ★ Gold Technical Analysis forAugust 01, 2016.

Technical outlook and chart setups:

Gold had completed rally through $1,350.00/55.00 levels as expected and discussed on Friday .The yellow metal had made highs at $1,356.00 levels before pulling back lower again. Please note that the metal is trading around $1,349.00/50.00 levels at this moment, looking to drop lower from here. It is still possible that Gold prints yet another high around $1,360.00 levels before resuming lower again. Please note that the metal is testing fibonacci 0.618 resistance of the drop between $1,375.00 and $1,310.00 levels respectively. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is impulse (5 waves) and a 3 wave counter trend rally has also followed through. Bears are expected to remain in control from current levels going forward. It is hence recommended to exit long for now and turn short. Immediate support is seen at $1,333.00 levels, while resistance is at $1,360.00 levels respectively.

Trading recommendations:

Remain short now, stop above $1,375.00, target is open.

Good luck!