Technical outlook:
Gold prices rallied through the $1,849 high in the late New York session on Thursday before pulling back. The yellow metal has hit its initial Fibonacci extension around the $1,846-47 mark as projected on the 4H chart here.Since then, prices have drifted sideways within a potential expanded flat as bulls prepare to take on the next target around $1,857.
Gold prices have the potential to push through $1,865 in the near term before producing a meaningful correction. Also, note that resistance around $1,858-60 would be taken out next as bulls are poised to remain in control. The yellow metal had carved a meaningful downswing between $1,998 and $1,786 earlier, which is being retraced now.
Gold prices are potentially heading towards $1,865 and $1,920 in the next few trading sessions. Besides, note that $1,920 is close to the Fibonacci 0.618 retracement of the above drop. Bears will be poised to come back in control thereafter and continue dragging lower towards $1,676 and $1,450 going forward.
Trading plan:
Potential rally through $1,865 and $1,920 against $1,780, then lower.
Good luck!
