Technical outlook:
Gold prices are preparing to rally through $1,965 and $2,000-10 mark in the next leg of proposed counter trend rally. Bulls must keep prices above $1,895 mark to keep the above structure intact. A push through $1,945-50 zone would accelerate price action further to terminate above $2,000 levels going forward.
Gold prices might have completed its first and second waves within the correction around $1,950 and $1,920 respectively. If the above holds well, the third wave should be underway toward $2,000-10 soon. Also note that fibonacci 0.618 retracement of the earlier drop between $2,070 and $1,895 is seen close to $2,000 mark.
High probability remains for bears to be back in control if prices manage to read the $2,000-10 handle going forward. Gold prices have carved a bearish boundary between $2,070 and $1,895 levels already, which should be retraced before the next leg lower could resume. Watch out for the counter trend rally to push prices higher from here.
Trading plan:
Potential rally through $2,000 against $1,895 near term. Then reverse lower.
Good luck!
