- Gold has retreated after finding resistance at 1218 level to trade around 1211 levels, erasing some earlier gains made in the previous European session.
- Further upside is set to be limited as the commodity finds strong resistance at 1218 levels as a result a further decline towards lower levels can be expected sooner or later.
- The commodity is poised to breach the support level located at 1196 and decline further towards downside as the yellow metal is weaker across the board against US dollar.
- To the upside, the strong resistance can be seen 1226, a break above this level would expose the commodity towards 1240 levels.
- To the downside immediate support can be seen at 1196, a break below at this level will open the door towards 1170 levels.
Recommendation: Go short around 1218, targets around 1196/1170, SL 1240
Support levels: S1-1196, S2-1170, S3-1152
Resistance levels: R1-1218, R2-1226, R3-1240
