Technical outlook:
Gold prices are preparing to push through $1,950 mark and accelerate towards $1,965-2,000 potential resistance zone. The yellow metal is trading close to $1,930 levels at the time of writing as bulls remain inclined to terminate the counter trend higher. The Fibonacci 0.382 retracement of the drop between $2,070 and $1,895 is passing through $1,965 mark, potential resistance.
Gold prices could face initial resistance around $1,965 mark while a push higher would test up to $2,000 levels. Please note that fibonacci 0.618 retracement of the above boundary is seen passing through $2,000 mark and hence probability remains high for a turn lower thereafter. Immediate price resistance is also seen through $2,000 mark hence bears remain poised to take control back.
Gold has already carved a meaningful bearish swing between $2,070 and $1,895 levels. The yellow metal is currently producing a counter trend rally before resuming lower again. The metal remains an excellent candidate to be sold on rallies since downside potential remains towards $1,450 and lower, going forward.
Trading plan:
Potential rally through $2,000 near term. Then turn lower.
Good luck!
