Technical outlook and chart setups:

Gold is seen to be trading around $1,314.00/15.00 levels at this moment, looking to form a meaningful bottom soon. The metal has made overnight lows at $1,310.00 levels as expected and discussed yesterday. It is possible that the metal might have already completed 5 waves down from $1,375.00 levels producing an impulse. Please note that the downside remains limited from here and bears might just want to take out $1,305.00 before pulling back sharply. It is hence recommended to book profits on short positions taken earlier and prepare to initiate long positions to take advantage of a potential countertrend rally. Immediate support is seen at $1,305.00 levels, while resistance is at $1,340.00 levels respectively. The metal should be looking to rally, going forward.

Trading recommendations:

Book profits on short positions taken earlier. Prepare to go long around $1,305.00 levels.

Good luck!