Technical outlook:
Gold prices have dropped to fresh intraday lows around $1,856-57 by the time of writing on Monday. The yellow metal is testing a potential support zone between $1,857 and $1,860 levels at this point in writing. Bulls are still looking poised to be back in control and push through the $1,893-95 mark, which is intermediary resistance.
Gold had earlier dropped between the $1,998 and $1,850 levels, carving a meaningful downswing as seen on the 4H chart here. The metal seems to be retracing from the above boundary within a Gartley structure. If the above structure unfolds accordingly, prices would stay above $1,850 and continue higher towards the $1,940-45 range in the next few trading sessions.
Gold is facing potential resistance around $1,943 since it is the Fibonacci 0.618 retracement of the above drop. A high probability remains for a bearish reversal if prices manage to reach the $,1940-45 zone. Bears would remain poised to be back in control thereafter and drag below $1,850 going forward. Only a break above $1,998 will delay matters further.
Trading plan:
Potential rally through $1,940-45 against $1,850
Good luck!
