Technical outlook and chart setups:

Gold has dropped lower towards $1,178.00/80.00 levels as seen here; more than our expectations since last two days. The metal is trading at $1,181.00 levels for now and looking into the wave structure it could rally from here, or initially drop towards $1.155.00/56.00 levels and then resume rally. An aggressive trade setup would be to initiate long positions now with risk at $1,170.00 levels while a conservative trade strategy would be to remain flat for now and look to buy at lower levels. Bulls could regain control till prices remain above $1,170.00 levels though. Immediate support is seen at $1,175.00, followed by $1,162.00 and lower while resistance is seen at $1235.00, followed by $1,280.00/85.00 and higher respectively.

Trading recommendations:

Initiate fresh long positions no, stop at $1,170.00, a target is open.

Good luck!