Technical outlook:
Gold prices reversed sharply on Thursday after printing highs around the $1,910 mark. Gold carved a potential bottom around the $1,865 level during the early Asia session on Friday. It is seen to be trading around the $1,875 level at this point in writing. Gold is expected to resume its rally soon, pushing through the $1,950 mark.
Gold prices need to stay above the $1,850 interim low registered early this week to keep the near-term structure intact. Gold carved a meaningful downswing between $1,998 and $1,850 in the past few trading sessions, which is being retraced for now. The main trend remains bearish with prices declining to $1,450 in the next several weeks.
Gold prices may start a corrective rally to the $1,950 mark, which is the Fibonacci 0.618 retracement of the above drop. Bears will remain poised to be back in control thereafter and continue lower towards the larger degree. Immediate price resistance is seen through $1,998 and prices should ideally stay lower.
Trading plan:
Potential rally through $1,950 against $1,850 then lower.
Good luck!
