Technical outlook and chart setups:

Gold dropped lower towards the level of $1,207.00 yesterday. Now, it is seen to be preparing to resume its rally. It is recommended to book profits on short positions taken earlier and initiate long positions at the current price, with risk around $1,170.00. The upside potentials remain up to at least $1,250/60.00. Immediate support is seen at $1,195.00 followed by $1,178.00 and lower, while resistance is seen at $1,223.00 followed by $1,240.00/50.00 and higher respectively. Bulls should be poised to retain control untill prices remain above the level of $1,278.00.

Trading recommendations:

Book profits in short positions, initiate long positions, stop at $1,17000 target open.

Good luck!