Technical outlook:
Gold prices dropped to $1,940 mark on Monday in line with a short-term projection. The yellow metal has pulled back thereafter and is seen to be trading close to $1,956-57 at this time in writing. Bears are expected to be back in control from here and drag the price lower towards $1,930 and $1,925 on Tuesday. The next leg rally can be expected thereafter.
Gold prices are unfolding a counter trend rally from $1,890 lows as seen on the chart here. Probably bulls have completed their first leg around $1,960-65 on Monday. The metal is unfolding its second wave at the moment and could drop through $1,925 mark before resuming its third leg higher towards $2,000 mark as projected here.
Gold has already carved a meaningful downswing between $2,070 and $1,890, which is being retraced right now. The potential remains toward $2,000 before bears are back in control. Also note that $2,000 is the Fibonacci 0.618 retracement of the above drop, hence probabilities remain high for a turn lower from there.
Trading plan:
Potential rally through $2,000 against $1,890.
Good luck!
