Technical outlook:
Gold prices whipsawed on Monday rising to $1,841 before reversing sharply lower closing the day at around $1,822. The yellow metal is seen to be trading at around $1,825 during the Asian session on Tuesday and is expected to push higher towards $1,886 at least in the near term. Bulls are looking poised to hold prices above $1,817 and broadly $1,805.
Gold prices are producing a counter-trend rally since May 16, 2022, after dropping to the $1,786 lows. The correction seems to have completed its first and second waves at around $1,880 and $1,805 and is progressing within its last-wave rally towards $1,920. A push above $1,880 is now required to confirm further acceleration.
Furthermore, Gold has carved a lower degree upswing between $1,805 and $1,857 as seen on the 4H chart here. Prices have also retraced the above upswing through $1,817 over the past week. If the above structure holds well, prices would stay above $1,817 and push through $1,886 and higher in the next several trading sessions.
Trading plan:
Potential rally through $1,920, against $1,781
Good luck!
