Technical outlook:
Gold prices are preparing to break higher through $1,950-60 range in the near term. The yellow metal is seen to be trading close to $1,933 levels at this point in writing and is expected to accelerate further on a push above $1,937-40 mark. Bulls are looking poised to hold prices above $1,890 interim support to keep the bullish structure intact.
Gold prices have remained subdued since $1,949 highs, consolidating within a contracting triangle. The yellow metal might have terminated its last leg of consolidation around $1,927 mark and is now looking to break higher. A push through $1,940 will accelerate further through $1,960 at least and up to $2,000 mark in the next few trading sessions.
Gold prices had earlier dropped from $2,070 mark through $1,890 levels carving a meaningful bearish boundary. The same is being retraced since $1,890 lows and prices are expected to reach $1,960 and $2,000 in the near term. Also note that $2,000 is close to its fibonacci 0.618 retracement of the earlier drop and hence probability remains high for a bearish turn.
Trading plan:
Potential rally through $1,960 and $2,000 against $1,890
Good luck!
