Technical outlook:
Gold prices dropped through the $1,843-45 mark intraday on Thursday before finding support again. The yellow metal is seen to be trading around the $1,846-48 levels at this point of writing and is set to rally towards $1,920 soon. Bulls will be keen to hold prices above the $1,786 mark to keep the near-term structure intact.
Gold is unfolding a countertrend rally since it hit the low of $1,786. The upswing seems to be already in place between $1,786 and $1,870, which has been retraced through the $1,828 mark as well. If the above structure holds well, prices would stay above the $1,828 mark and continue pushing through the $1,920 mark going forward.
Gold is working on a larger degree downswing between $1,998 and $1,786. The 0.618 Fibonacci retracement of the above drop is seen around $1,920 as well. It is also met with past support which turned into a resistance zone along with trendline resistance. There is a high probability of a bearish bounce if prices manage to reach there.
Trading plan:
Potential rally through $1,920 against $1,786
Good luck!
