My long term view for gold is still bearish because stuff like rate hikes WILL happen and it's only a question of WHEN, not IF. Having said that, I wouldn't really sell right above this ...sell into rallies from that level instead or wait for a clean break if you're (very) patient. That way you won't get killed by the .
DMI is bearish with DI+ having dropped below 20 now. I guess taking a stab if 1178.86 breaks isn't bad if you get a good short signal on lower itmeframes...just don't be surprised if it bounces off 1165.86, so set your trades to breakeven and/or use sensible stop losses.
Personally, I'll be looking at selling opportunities at key resistance levels up to 1391.97 (2014 high!). I really can't see that level break bar any freaky stuff (China economic crash, Russia attacking Finland, etc.) happening...but who knows. I might play a few shorter term longs in between those resistance levels should the bulls gain strength, but I won't be a position trader long term holder...sry gold bugs ;)
We might get some more of this sideways crap though because we faced the same at this level in Nov/Dec...and summer's right around the corner.
To clarify: I am looking for shorts but I'm not saying go short right now. Wait for rejections at the indicated resistance levels and use proper money management (breakeven settings, proper stop losses & leverage). In the short to maybe medium term this could go either way, so I'm not opposed to short term longs given bounces from key support levels. Just in the long run I'm only after adding position shorts.