The month long bullish run of gold came to an end yesterday as the yellow metal lost it’s glitter by USD 32 (1336.78 to 1306.36).Currently gold is resting at 1310.50 – 1305.60 level which happens to be 38.2% Fib retracement. Considering current bearish momentum and next support level at 1282.75 – 1278.10, coinciding with 61.8% Fib retracement, it is expected that Gold will remain under pressure for the current week as it tests support levels, providing high probability setup for swing traders.
Alternatively, it is also possible that Gold completes its retrace at current zone and retains its bullish run of last month. In that case, expect gold to hit highs of earlier this year around 1391.00. Current price action along with support/resistance structure support bearish outlook but stop loss shouldn't be ignored, in case Gold takes a U-Turn.