FX.co ★ Trading plan for Gold for August 23, 2021

Technical outlook:

Gold has pushed higher towards $1,806 in this hour of trading and bulls might remain poised to push through $1,825/30 mark as well before finding resistance. Please note that the yellow metal has carved a meaningful bearish boundary between $1,916 and $1,677 levels, which is being retraced for now. The fibonacci 0.618 could provide strong resistance and a bearish turn warranted.

Gold is seen to be trading around $1,803 levels at this point in writing and is expected to push higher towards $1,825 levels in the immediate future. Immediate resistance is seen around $1,831, while support is seen at $1,772 levels respectively. A bearish turn around $1,831 cannot be ruled out as the resistance trend line converges with fibonacci 0.618 there.

On the flip side, if Gold manages to break above $1,831 and also its resistance trend line, the structure might turn bullish over the next few weeks and potential remains for a test of $1,916 highs as well. As of now, we shall keep short-term target around $1,831 and review the price action thereafter to decide on a further direction.

Trade plan:

Potential long with stop @ 1,770 and target @ 1,830

Good luck!