Technical outlook:
Gold prices whipsawed on Thursday rallying through $1,847 first and then reversing sharply lower towards the $1,820 mark. The yellow metal is seen to be reading close to the $1,624 mark at this point in writing. It is expected to resume higher towards $1,886 ad $1,920 in the near term. Bulls will be poised to hold prices above the $1,805 mark to keep the near-term structure intact.
Gold prices are still unfolding a larger degree corrective wave since the $1,786 lows earlier. The metal is within its last sub-wave and is expected to push through the $1,920 mark against the $1,805 interim support. Furthermore, prices have found support around the Fibonacci 0.786 retracement of its recent upswing between $1,805 and $1,855 respectively.
A high probability remains for a bullish turn from current levels as bulls prepare to come back in control. The bottom line is that prices should stay above $1,805 and broadly above the $1,786 interim lows. Traders might be preparing to initiate fresh long positions from current levels ($1,824) with a potential near-term target towards the $1,886 mark.
Trading plan:
Potential rally through $1,920 against $1,781
Good luck!
