Gold has retreated after finding resistance at 1262 levels to trade around 1235 levels, erasing some earlier gains made in the previous European session.
- However, downside is set to be limited as the commodity finds strong support at 1218 levels as a result a strong rebound can be expected sooner or later.
- The commodity is poised to breach the resistance level located at 1081 and advance further towards upside as the dollar is weaker across the board against yellow metal.
- To the upside, the strong resistance can be seen 1263, a break above this level would expose the commodity towards 1272 levels.
- To the downside immediate support can be seen at 1231, a break below at this level will open the door towards1218 levels.
Recommendation: Go long around 1219, targets around 1247/1272, SL 1206
Support levels: S1-1231, S2-1218, S3-1206
Resistance levels: R1-1247, R2-1263, R3-1272
