Gold reached yet another high in the area around the levels of $1,214.00/15.00 yesterday before pulling back. The metal is expected to face resistance near the current levels and should be producing a meaningful retracement towards the levels of $1,140.00/50.00. Bulls have already taken out an intermediary of $1,191.00 earlier, and a pullback is likely to take place soon. It is recommended to remain flat for now and await confirmation of a reversal to initiate short positions again. Immediate interim resistance is seen at $1,214.00/15.00, while support is seen at $1,180.00. Please note that the metal is expected to drop to the levels of $1,150.00/40.00, the backside of the resistance .
Trading recommendations: Remain flat for now. Look for an opportunity to enter short positions again.
GOLD: Having continued to decline following its Friday downside pressure after price failure, more weakness is now envisaged in the days ahead. On the downside, support comes in at the 1210.00 level where a break will turn attention to the 1200.00 level. Further down, a cut through here will open the door for a move lower towards the 1190.00 level. Below here if seen could trigger further downside pressure targeting the 1180.00 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, resistance resides at the 1240.00 level where a break will aim at the 1250.00 level. A turn above there will expose the 1260.00 level. Further out, resistance stands at the 1270.00 level. All in all, GOLD looks to build up on its corrective weakness.