Technical outlook:
Gold prices climbed above $1,830 during the European session on Thursday in line with expectations. The yellow metal might have carved a higher low around the $1,807 mark on Wednesday and it is now on its way to $1,846 and $1,857 in the near term. Bulls will remain poised to hold prices above the $1,786 low to keep the structure intact.
Gold has recently carved a lower degree upswing between $1,786 and $1,836 which was retraced until $1,807 on Wednesday. If the above structure holds well, prices would rally through $1,857 at least before pulling back. Alternatively, the correction might not be completed yet and there might be one more low to be printed around the $1,800-05 mark before resuming higher again.
Gold prices are set to push higher either from here or after dropping through $1,805 in the coming days. Projected upside targets are $1,865 and the $1,915-20 levels in next few trading sessions. Also, note that the Fibonacci 0.618 retracement is passing through $1,920, hence the probability for a bearish reversal remains high.
Trading plan:
Potential rally through $1,865 and $1,920 against $1,780
Good luck!
