Technical outlook:
Gold prices have remained subdued since early this week trading within a tight range between $1,930 and $1,935 levels. The yellow metal can take a dip towards $1,915-20 zone from current levels before turning higher again. Bulls will remain poised to hold prices above $1,890 mark to keep its immediate bullish structure intact.
Gold prices have carved a lower high around $2,070 mark in March 2022. Since then, bears have regained control and dragged prices lower through $1,890 levels over the last week. After dropping lower for almost a month, the yellow metal might be producing a counter trend rally in the next several trading sessions.
Gold prices could reach up to $2,000 levels, which is fibonacci 0.618 retracement of the entire drop between $2,070 and $1,890 levels respectively. Potential also remains for a push through $2,030 mark, which is also converging with fibonacci 0.786 retracement. Bears will remain inclined to drag prices lower below $1,890 mark thereafter.
Trading plan:
Potential rally through $2,000 mark, then reversal.
Good luck!
