Technical outlook:
Gold prices have finally rallied towards its much anticipated counter trend and reaching close to $1,960 mark on Thursday. The yellow metal is now seen to e pulling back and is seen to be trading close to $1,947 levels. It is expected to find near term support through $1,930 levels, which is also fibonacci 0.618 retracement of the recentupswing between $1,910 and $1,958.
Gold could see potential support through $1,930 mark and turn bullish towards $1,965 and up to $2,000-10 levels going forward. On the flip side, if prices drop below $1,920, it might open the door to re-test $1,910 and even drag the price further lower to the $1,880 mark. For now, bulls are looking inclined to push through $2,000 levels.
Gold is currently producing a couter trend rally to retrace the earlier bearish boundary between $2,070 and $1,895 levels as seen on the 4H chart here. Once complete, bears are expected to be back in control and drag prices lower to $1,450 and beyond. The metal remains a good instrument to be sold on rallies.
Trading plan:
Potential rally through $2,000 against $1,890. Then lower.
Good luck!
