Technical outlook:
Gold might have one more shallow high left to be printed around the $1,683-85 zone before the metal could reverse lower again. The yellow metal is seen to be trading around the $1,672-75 range at this point in writing as the bulls prepare for the last leg higher. It would be interesting to see if prices are developing a larger-degree downtrend or just a pullback.
Gold is seen to be currently working up on its recent downswing between $1,730 and $1,616 levels as seen on the 4H chart here. Prices have rallied through $1,681 already, which is just below the Fibonacci 0.618 retracement level around $1,685-86. Strong resistance could be faced if prices manage to reach up to $1,685 in the near term.
Gold prices are expected to drop towards the $1,645-50 zone, which is potential support, for the short term. We shall review the waves thereafter and suggest if the rally is expected to continue or not. For the immediate near term though, the bulls might be looking to push one last time through the $1,683-85 zone before giving in to the bears.
Trading idea:
Potential rally towards $1,685 against $1,616, then lower
Good luck!
