Gold is severely oversold in a 6 month bull trend now so a good chance of a recovery to quite strong resistance at 1253/54. Be careful here though as stated yesterday, although there is no buy signal we are severely oversold so just bear in mind we could see a small correction higher. Shorts are now risky. Be ready to buy a break above 1256 targeting short term Fibonacci and trend line resistance at 1262/63. A high for the day likely but shorts need stops above 1268. Take profit on shorts at 1256/55.
First support at 1247/48 could now hold the downside but below here retests 1242/41 which has held so far this week. However use strong 200 day moving average support at 1238/37 to exit shorts and try longs from here down to 200 week moving average support at 1234/33. This is the best chance of a low for the week. If we are to remain in a 6 month bull trend we should start the next leg higher from here. Longs need stops below 1225.