Technical outlook and chart setups:

Gold breaks lower through the $1,269.00 levels as it was expected and discussed yesterday. The metal has also broken the support trend line passing through the lows, starting from $1,170.00 levels as seen here. The metal is expected to be well supported at $1,250.00 levels as you can see on the chart (red). Please also note that $1,250.00 is the Fibonacci 0.382 support of the rally from $1,170.00 to $1,307.00 levels, respectively. Immediate support is seen at $1,250.00 followed by $1,220.00/25.00 and lower, while resistance is seen at $1,295.00 (interim) followed by $1,307.00 and higher, respectively. Bears are expected to remain active for a while, before bulls take back control.

Trading recommendations:

Initiate long positions around $1,250.00 and lower untill $1,220.00/25.00, stop is below $1,200.00, target is open.

Good luck!