Technical outlook:
Gold prices rallied through $1,960-65 zone on Monday as expected. The yellow metal might have found interim resistance and prices can pullback from here towards $1,930-40 zone before resuming higher. Potential remains for a push through $1,975 and up to $1,990 as projected on the 4H chart here.
Gold prices have already carved a meaningful downswing between $2,070 and $1,890 levels earlier. The metal has been carving a ounter trend rally since $1,890 low and has met with first potential resistance around $1,960-65 zone. Also note that $1,960 is fibonacci 0.382 retracement of the above downswing. Prices can retrace a bit from current levels.
Furthermore, bulls are looking poised to push higher through $2,000 mark, which is the Fibonacci 0.618 retracement of the above downswing. It remains to be seen if prices rally through $2,000 levels directly from here or after pulling back. Gold prices are expected to rally in the next few trading sessions.
Trading plan:
Potential rally through $2,000 against $1,890.
Good luck!
