Technical outlook:
Gold is trading close to the $1,812 mark after testing $1,823 earlier today. The yellow metal remains just shy of initial resistance around $1,831, which is also close to fibonacci 0.618 retracement of the earlier drop as highlighted here. Furthermore, the metal is also facing resistance from the slopping trend line passing through the $1,916 high. It could produce a corrective drop at least towards $1,780 in the near term.
Gold has dropped between $1,916 and $1,677 in the past few trading sessions, carving a meaningful bearish boundary, which has almost retraced towards fibonacci 0.618 levels seen around the $1,853 mark. It is quite possible for bulls to push towards $1,835 from current levels before bears are back in control.
Also note that recent rally between $1,677 and $1,823 might be close to termination soon. If this is true, a pullback would remain possible before the rally resumes again. Watch out for the break of $1,835 in the near term to prepare for a pullback.
Trading plan:
Potential for a rally towards $1,835 against $1,800.
Good luck!
