Technical outlook:
Gold prices dropped to $1,835 on Friday before finding some bids coming. The yellow metal is seen to be trading at around $1,842 at this point in writing and is expected to resume higher towards $1,920 soon. Intraday support is seen through the $1,830-31 area as the bulls prepare to hold prices broadly above $1,805.
Gold prices have been developing a corrective rally since the $1,786 lows earlier. The metal is expected to terminate its rally through $1,920 before turning lower again. The yellow metal could be into its last leg rally with the corrective phase since carving a higher low around the $1,805 mark earlier. A push through $1,860 will accelerate further.
Gold prices are working on the recent lower degree upswing between $1,815 and $1,859-60 respectively. The Fibonacci 0.618 retracement of the above rally is seen through the $1,830 mark. Hence, the probability remains high for a bullish bounce if prices drop through the above levels going forward. The bottom line is the $1,805 low registered recently.
Trading plan:
Potential rally through $1,920 mark against $1,780
Good luck!
