Gold has moved to optimistic terrain benefiting from a jiffy lower in both U.S. bond yields and the dollar, as investors remained watchful after the release of Federal Reserve’s minutes from its June meeting.
Technical Outlook
Gold prices earlier moved fresh low and bounced back to create Bearish flag chart pattern. In this pattern the current downtrend in price may continue through a steady and break below $1219-$1210. Based on the current price level in Flag resistance place, I could view this as a selling opportunity at $1228.
I believe Gold prices will be breaking below the Flag line. At this juncture, I recommend you to start booking your profit $1217-$1210 and then eventually $1200 level below there. We could see the Gold trading consolidation happening now as the chart shows trend line for volume slope down. I suggest you to maintain strict Stop loss below the flag line above at $1231.