Technical outlook:
Gold prices rallied through the $1,772 highs on Friday before hitting resistance. The yellow metal has pulled off the highs and is seen to be trading close to $1,755 at this point in writing as the bears prepare to drag further.Immediate resistance is seen at $1,810 and a push higher will open the door to test up to the $1,820-25 zone in the near term. We are looking lower towards $1,725 for now.
Gold has hit the Fibonacci 0.786 retracement of the larger-degree downswing between $1,807 and $1,616 as seen on the 4H chart here. Also, note that the Fibonacci 0.382 extension of the counter-trend rally also converges close to $1,772. A bearish reversal here remains a possible decline towards fresh lows.
On the flip side, if prices reverse from the $1,725-45 zone, the metal could push further towards $1,800 before reversing lower again. Besides, note that the potential remains for a print above $1,807 to complete the corrective expanded flat structure at a larger degree. Overall, Gold prices might reverse from here or after visiting the $1,800-10 zone.
Trading idea:
Potential upside targets hit. Flat for now.
Good luck!
