Technical outlook:
Gold dropped through the $1,809 mark during the Asian session on Tuesday before bouncing back sharply. The precious metal rallied through $1,831 intraday before pulling back again. At this point in writing, it is seen trading around the $1820 mark, in line with strong intraday support, and is expected to continue pushing higher from here.
Gold dropped through the Fibonacci 0.618 retracement of its recent upswing between $1,786 and $1,880. The precious metal might have terminated its corrective wave around the $1,809 mark and is now looking ready to resume its final leg higher through $1,920 going forward. A breakout at $1,831 will accelerate pushing higher.
Gold prices are working on a larger degree downswing between $1,998 and $1,786 as seen on the 4H chart. The counter-trend rally, which began at $1,786 is expected to terminate through the $1,920 mark going forward. Note that the Fibonacci 0.618 retracement of the above downswing is also passing through $1,920 hence resistance should be strong.
Trading plan:
Potential rally through $1,920 against $1,786
Good luck!
