Technical outlook:
Gold seems to have completed or is very close to completing its rally that began from $1,262 levels in May 2019. The projected upside targets for a bearish reversal are towards $1,626. Gold has managed to push through $1,611 levels today. Looking at the overall wave structure on a long term chart (not shown here), the yellow metal has been in a multi-year counter trend rally from the $1,046 lows in December 2015. A triangle consolidation that lasted for over 3 years had terminated around $1,260 levels earlier. Since then, Gold has produced an impressive rally towards $1,557 as the first wave. It was followed by a corrective drop towards $1,445 levels that found support at the fibonacci 0.382 retracement, shown here. The final wave resumed from $1,445 towards the $1,600/20 zone, which is expected to produce a bearish reversal. Also note that the $1,590/1,600 zone is fibonacci 0.618 retracement of the earlier drop from $1,600 towards $1,046 respectively. Keeping all the above in mind, Gold should be very close to terminating its bull run.
Trading plan:
Sell between $1,611/20, stop above $1,635, target is open.
Good luck!
