Technical outlook:
Gold prices slipped through $1,830-31 on Thursday after producing a strong rally through the $1,847 high on Wednesday. The yellow metal is seen to be trading at around $1,833-34 levels at this point in writing and is expected to push through $1,885 and up to $1,920 in the next few trading sessions. Bulls are looking poised to hold prices above $1,824.
Gold prices are broadly unfolding a larger degree corrective wave towards $1,920. Furthermore, the metal has terminated its first and second sub-waves at around $1,880 and $1,805 respectively. Since then, bulls are progressing within the last wave higher towards $1,920. Also, note that prices have bounced off the Fibonacci 0.618 retracement around $1,825 of the lower degree upswing.
Gold is looking well poised to progress within the third wave rally as prices are now finding support close to $1,831-32. If the above structure holds well, the next potential targets are seen at 1,886 and $1,920 in the near term. Traders might be preparing to add further long positions around the current level ($1,833-34) against $1,805.
Trading plan:
Potential rally towards $1,920 against $1,781
Good luck!
