Technical outlook:
Gold prices are testing $1,950-60 zone yet again on Monday after nearly testing $1,958 over last Friday. The yellow metal is seen to be trading close to $1,961 mark at this point in writing and is expected to produce a pullback rally toward $2,025-30 zone in the near term. Watch out for a bullish bounce from close to $1,950-60 zone.
Gold prices reversed sharply lower after touching $2,070 mark over the last week. The initial drop has reached up to $1,958 and looks to be complete or near to completion. If the above structure holds well, bulls will be inclined to be back in control over the near term. They could produce a counter trend rally pushing prices higher through $2,025 mark.
Gold remains vulnerable to further losses going forward and a major top seems to be in place around $2,070 mark. Expect a sharp counter trend rally through $2,025 levels from here before bears are back in control. Prices should stay below $2,070 level to keep the earish structure intact.
Trading plan:
Initial target almost met. Pontential earish reversal from $2,025 mark against $2,070 going forward.
Good luck!
