Technical outlook:
Gold prices rallied through the roof toward $2,070 mark late on Tuesday, threating to take out $2,075 swing highs. The yellow metal faced considerable resistance and reversed as sharply on Wednesday. It is seen to be trading close to $1,990 levels at this point in writing after printing intraday low below $1,980 mark.
Gold's price action might be suggesting a meaningful potential top in place around $2,070 and that bears could be back in control from here. Please note that initial support comes in around $1,960 as labelled on the 4H chart here. A break below that would confirm that bears are back in control and are here to stay for long.
Earlier, Gold had met its fibonacci 1.618 extension around $2,020 high as depicted on the chart. The final leg higher was an extended one but still keeps the bearish outlook intact. The metal seems to be good to be sold on rallies from here as bears target $1,960 and $1,880 levels in the near term. Watch out for a potential trend reversal ahead.
Trading plan:
Potential drop through $1,880 against $2,080
Good luck!
