Gold rose on Wednesday, recovering after hitting its lowest in more than three months in the previous session. The drop on Tuesday was bullion's biggest one-day percentage fall since September 2013 and brought spot gold to its lowest level since Britain voted to leave the European Union in June
The market is clearly very long and someone and testing the 1,300 levels resulted in a long squeeze. Absence of Chinese buyers due to a week-long holiday robbed the market of buyers who might have looked for bargains.
Tuesday's fall was really a long liquidation and was probably overdone. The 1,250 would be a good support. We do not really expect gold to go much lower from here. We think current gold levels are good opportunity to get long.
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