Technical outlook:
Gold prices raised through the $1,836 high on Wednesday, having carved a meaningful boundary between $1,786 and $1,836. In the process, bulls took out initial resistance of around $1,828 and asserted themselves. The yellow metal has been pulling back since then and has dropped through the $1,807 intraday lows on Thursday.
Gold prices are expected to be well supported at around $1,805 since it is the Fibonacci 0.618 retracement of the above upswing as marked here. Prices just remained shy by two points ($1,807) before pulling off through $1,812 (the current market price). A high probability remains for a continued rally through $1,857 and $1,900 going forward.
Gold has carved a larger degree downswing between $1,998 and $1,786 from which it is retracing now. The projected targets for the corrective rally are $1,860 and $1,920. Also, note that $1,920 is close to the Fibonacci 0.618 retracement of the above drop. Hence, there is a high probability for bears to come back in control thereafter.
Trading plan:
Potential rally towards $1,860 and $1,920 against $1,780
Good luck!
