Gold trades above 50% Fibonacci of the wave from 1191.00 to 1046.00 at 1118.00, which is a positive sign according to Fibonacci rules and would extend the bullishness towards 1136.00 where 61.8% exists.
However, risk versus reward ratio is inappropriate around 1125.00 along with weakness on RSI, which nears 70.00 levels.
Hence, we will be bullish, but we will avoid trading the metal.
Support: : 1120.00 – 1118.00 – 1110.00
Resistance: 1130.00 – 1136.00 – 1142.00
Direction: Bullish, but we will avoid trading