Gold prices continue to slide as the metal trades around $1,920-25 range at the time of writing. Around this time last week, bulls were completely in control to push prices through the roof around $2,070 while we have been calling for a bearish reversal all the while. Most traders might have initiated longs with no respite in selloff seen.
We have re-adjusted the Fibonacci retracement levels on the 4H chart here since the primary downswing is now between $2,070 and $1,920-25 levels respectively. The counter trend rally should materialize any moment and push prices through $2,015-20 mark going forward. It is the Fibonacci 0.618 retracement of the above drop and hence a potential turning point.
Gold prices have easily taken out immediate price support around $1,950-60 mark as discussed earlier. The trend has strongly reversed lower since $2,070 highs and the metal remains a strong candidate to be sold on rallies.
Trading plan:Ptential counter trend rally through $2,015 mark then reversal against 2,080.
Good luck!