Technical outlook and chart setups:
Gold has dropped lower as expected and discussed yesterday and is trading at $1,228.00 levels at the moment. The yellow metal still remains into cone consolidation, and remains vulnerable for a drop lower towards $1,190.00 levels at least. Please note that intraday pullback rallies are still possible, but prices should remain below $1,250.00 levels in near term. Hence it is recommended to take profits on short positions and look to sell again on rallies, with risk above $1,250.00 levels. Immediate support is seen at $1,215.00 levels, while resistance is at $1,248.00 levels respectively. Intraday rallies should face stiff resistance around $1,235.00/40.0 levels.
Please take profits on short positions taken yesterday. Sell again on rallies through $1,235.00/40.00.