Technical outlook:
Gold prices are consolidating within a tight trading range between $1,980 and $2,000 levels since Thursday. The yellow metal had reversed sharply from $2,070 highs earlier and dropped through $1,970 before finding some support. Bears remain inclined to drag lower towards $1,950 mark before bulls are back in control near term.
Gold prices might have carved a formidable lower top at $2,070 early this week, which might not be seen for next several weeks. The metal has also hit its fibonacci 1.618 extension around $2,010 and surpassed higher. A break below $1,960 will confirm that bears are back in control and the trend has potentially reversed.
Gold is facing strong resistance around $2,070 while immediate price support is seen at $1,950-60 zone. One the support is taken out, the metal would remain an excellent instrument to be sold on rallies for the long term. Upside if any above $2,070 is limited and would last only for a while. Bears remain in control from here on.
Trading plan:
Potential drop to $1,960 in the ear term.
Good luck!
