We begin the second week of September with Gold falling below the support of 1275 which the precious metal resisted once on the 4th of September. With the price staying above 1264 on the Daily chart, Gold is likely to retest 1271-1275 before continuing on its fall.
Breaking 1275, we may see 1278.6 and then 1282 where it is likely to encourage massive take profits from buyers.
Gold has retested the Fibonacci extension 1272.2% of the downtrend and rebounded. Aggressive buyers may enter now and keep a tight stop loss below 1260, targeting 1275 –1279 before shifting stop loss to entry price.
Intraday traders may look at the hourly chart and await the formation of the inversed head and shoulder as shown by the arrow before going for the buy entry, in view of the swing entry, stop losses may be placed below the lowest attained price on Sept 4.