Technical outlook:
Gold prices dropped to $1,841 in the late New York session on Wednesday before finding some bids. The yellow metal pushed through $1,856 thereafter only to find resistance and pulled back. It is seen to be trading at around the $1,844-45 mark at this point in writing as bulls prepare yet another attempt to push through $1,890.
Gold prices might have unfolded a corrective pattern (expanded flat) $1,865 high registered on May 23, 2022. If complete, the metal will turn higher from here and push towards the $1,880-90 zone before terminating. On the flip side, a drop below $1,835 from here would confirm an interim top in place around $1,870.
If the alternative scenario unfolds, Gold might continue dragging through the $1,815-20 zone before finding support again. Also, note that $1,815 is close to the Fibonacci 0.618 retracement of the entire rally between $1,786 and $1,870. Hence, the probability remains high for a bullish bounce if prices drag through that mark. Bulls will be looking to push through $1,920 thereafter.
Trading plan:
Potential rally through $1,915-20 against $1,781
Good luck!
