The metal dropped during yesterday's trading session waiting to break 1277.00 levels to confirm the bearish possibility, but the price failed to do so. Despite that this possibility became valid after the positive divergence failed on MACD, but stabilizing below 1277.00 supports negativity because it takes the metal to trade below Linear Regression Indicators.

Only a break above 1296.25 and confirming it by stabilizing above the psychological barrier 1300.00 might lead to a new bullish wave. Therefore, we remain neutral as long as the price stabilizes between 1277.00 and 1300.00, but we turn negative when levels 127.00 are broken.

 

Based on the above, sell gold at 1276.00, targeting 1272.00, 1262.00, then 1250.80, and stop-loss above 1296.25.