Technical outlook and chart setups:
Gold has dropped lower from $1,250.00 levels as expected and discussed earlier. The yellow metal is trading at $1,226.00/27.00 levels for now, looking to push lower towards $1,190.00 levels at least. Please note that the fibonacci 0.382 support levels (of rally between $1,170.00 through $1,263.00 levels) is also passing around $1,190.00 levels. Furthermore, an intermediary trend line support is passing through $1,180.00 levels. Hence it is recommended to remain short for now, with risk at $1,235.00 levels. Immediate resistance is seen at $1,232.00 levels, while support is at $1,200.00 levels respectively. A minimum drop towards $1,190.00 levels is expected for now.
Remain short for now, stop at $1,235.00, targets are at $1,190.00 and $1,170.00.