Gold extended the decline on Thursday, toward 1275.00 level, which is the 127.1 extension level for the latest bullish wave as shown on the daily chart. An upside correctional bounce seems likely, but the price broke the 1321.00 previous low, and rallies towards this level may provide new opportunities to short the metal.
Support: 1285.00, 1276.00, 1265.00, 1252.00, 1240.00
Resistance: 1300.00, 1308.00, 1321.00, 1338.00, 1354.00
Recommendation Based on the charts and explanations above, we prefer to short gold below 1320.00 targeting 1300.00 and 1285.00 and 1260.00. Stop loss above 1340.00