Technical outlook and chart setups:
Gold has dropped lower as expected and is trading at $1,269.00 levels at this moment. The yellow metal has now broken below the consolidation support at $1,275.00 levels and should be looking to push towards $1,240.00/50 levels at least. The wave structure indicates that a medium term top is now in place at $1,315.00 levels and that the metal should be looking to retrace the entire rally between $1,046.00 and $1,315.00 levels, as depicted here. Please note that the fibonacci 0.618 retracement is passing through $1,149.00 levels, and a bullish bounce there should be bought. But the metal needs to push below $1,200.00 levels at least to confirm the above wave count. It is recommended to remain short for now, with risk above $1,315.00 levels. Immediate support is seen through $1,200.00 levels, while resistance is at $1,315.00 levels respectively.
Remain short for now, stop at $1,315.00, target is $1,150.00