Technical outlook:
Gold prices dropped to $1,925 lows during the Europe Session on Monday before finding support again. The yellow metal has moved in line with our earlier projection for a pullback from $1,960-65 mark. Bulls might want to remain in control from here and push prices through $1,990-2,000 zone in the next few trading sessions.
Gold prices are unfolding a counter trend rally since $1,895 lows and the metal seems to be into its last leg before terminating higher. The metal has bounced off the Fibonacci 0.618 retracement of the recent upswing between $1,895 and $1,965 levels (not displayed here). If the above structure holds well, we can expect prices to stay above $1,910 and push higher.
A break above $1,965 will confirm and accelerate towards $1,990-2,000 zone. Also note that $2,000 is fibonacci 0.618 retracement of the entire drop between $2,070 and $1,895 levels. High probability remains for a turn lower if prices manage to reach there.
Trading plan:
Potential rally towards $2,000 against $1,900
Good luck!
