Technical outlook:
Gold prices reversed sharply from around $1,920 mark on Friday. The yellow metal dropped through $1,877 intraday on Monday and is now pushing higher through $1,881 at this point in writing. Bulls are not looking poised to hold prices above $1,872 mark and continue higher towards $1,930 and $1,950 levels going forward.
Gold prices had earlier dropped between $1,998 and $1,872 levels carving a meaningful downswing. The metal is now working on the above boundary and is carving a counter-trend corrective rally, which could terminate around the $1,950 mark. If the above structure holds well, prices will stay above $1,872 and continue higher from here.
Furthermore, Gold has already broken below $1,880 support as seen on the 4H chart displayed here. Ideally, the metal is now expected to produce a meaningful corrective rally at least through the $1,950 mark. Also note that $1,950 is the Fibonacci 0.618 retracement of the recent downswing between $1,998 and $1,872 levels respectively.
Trading plan:
Potential rally through $1,930 and $1,950 against $1,872
Good luck!
