Technical outlook:
Gold prices slipped through $1,828 during the Asian session on Wednesday before finding some bids. The yellow metal has moved in line with our earlier projections, hence possibilities still remain for another drop through $1,820 before the price resumes its rally. Bulls will be poised to hold prices above the $1,786 mark to keep the structure intact.
Gold prices are developing a counter-trend rally since printing lows at $1,786 on May 16, 2022. The metal is expected to push through $1,920 before resuming its larger degree bearish trend. The yellow metal is further unfolding the second wave towards $1,820 within its corrective phase mentioned earlier.
Furthermore, the Fibonacci 0.618 retracement of the recent upswing between $1,786 and $1,870 is seen to be passing through the $1,820 mark. Hence, the probability remains high for a bullish bounce if prices are able to reach there. Traders might be preparing to take profits on short positions and to buy from the $1,820-30 zone.
Trading plan:
Potential rally through $1,920 against $1,781
Good luck!
