This Tuesday Steve O’Hare is trading gold. He says the correction higher from the start of June has stalled near the 61.8 percent Fibonacci retracement and the medium term resistance at 1280.

Steve explains that this was seen as both a technical and fundamental correction, with oversold and over-extended indicators requiring balancing.

He adds that an escalation in the geo-political situation in Iraq has provided a safe-haven element to both oil and gold.

An aggressive pull-back lower has followed, over the last 24 hours, posting a bearish shooting star yesterday and demand seems to have been satisfied on both counts.

We now expect the medium term picture to take control once more as the drive lower re-starts.

As a result, he looks to sell XAUUSD at the open around USD 1275 with a break above USD 1285 his target is 1240 and 1200. Once the first target is reached, he wishes to move stop to entry and look for the second target on balance of position.