Technical outlook:
Gold prices climbed above $1,835 during the Asian session on Monday after having tested the $1,820 levels last Friday. The yellow metal seems to have carved a potential low at around $1,820 and is now looking to push through $1,920 in the next several trading sessions. Bulls will be inclined to hold prices above $1,820 to keep the near-term structure intact.
Gold prices have been unfolding a counter-trend rally from the $1,786 lows. The metal has been successful in terminating the first and second waves at around $1,880 and $1,805 respectively. Since then, bulls are progressing within the third wave rally towards $1,920. If the above structure holds well, the next leg should push through $1,886 and beyond.
Gold has managed to carve a lower-degree upswing between $1,816 and $1,837 in the past two days. The metal might produce intraday correction towards the $1,825-27 zone, which is potential support, before resuming higher again. Traders might be preparing to hold long positions and add more on corrective drops.
Trading plan:
Potential rally through $1,920 against $1,781
Good luck!
