Technical outlook and chart setups:

Gold has dropped lower from last week's highs ($1,352.00 level) and is seen to be trading at $1,329.00 level at this moment. The yellow metal had formed lows at $1,321.00 level yesterday before rallying. Please note that the metal has tested and bounced from fibonacci 0.618 support of the rally between $1,302.00 through $1,352.00 levels earlier. Furthermore an intermediary line of support is also seen passing through yesterday's lows and the metal remains well supported at least for now. The wave structure indicates that the metal seems to have formed a meaningful low at $1,321.00 level yesterday and should be looking to print higher highs going forward. On the flip side, a push below the trend line support could change the short term structure. It is recommended to remain long now, with risk at $1,305.00 level. Immediate resistance is seen at $1,340.00 level, while support is seen at $1,320.00 level respectively. Please note that the metal looks to be into its last leg (wave 5) rally and it is expected to reverse lower from close to $1,380.00/90.00 levels going forward.

Trading recommendations:

Remain long now, stop is below $1,320.00, a target is $1,375.00

Good luck!