FX.co ★ Trading plan for Gold for February 03, 2022

Technical outlook:

Gold prices are looking poised to push higher through $1,825-30 zone in the next few trading sessions. The yellow metal is producing a counter trend rally after dropping to $1,780 lows over the last week. Ideally, prices are expected to stay below $1,853 mark to keep the above bearish structure intact going forward.

Gold prices might drop to $1,798-1,790 levels during the day before finding support again. Bulls are poised to remain in control and complete the down gartley wave structure pushing through $1,825 levels at least. Also note that $1,826 is the Fibonacci 0.618 retracement of the recent downswing between $1,853 and $1,780 levels respectively.

High probability remains for Gold prices to resume lower from $1,826 levels and drag below $1,753 in the next few trading sessions. Only a consistent break above $1,837 levels will open the door to test $1,853 and push higher through $1,900-20 zone. For now, the metal remains a good candidate to be sold on rallies towards $1,825.

Trading plan:

Potential rally through $1,825 against $1,775

Good luck!