FX.co ★ Trading plan for Gold for April 29, 2022

Technical outlook:

Gold prices had dropped through $1,872 mark on Thursday before finding support. We had projected a rally to resume soon after prices broke below its past support seen around $1,880 mark. The yellow metal has now rallied through $1,907 intraday on Friday at the time of writing. There could be more upside left towards $1,922 and $1,950 levels going forward.

Gold has carved a meaningful downswing between $1,998 and $1,872 levels as seen on the 4H chart here. The yellow metal will be working on the above boundary to carve a lower high before resuming lower again. The corrective wave unually unfolds into three sub-waves and looks like the first one is underway through $1,920 mark.

Gold prices are most likely to terminate around $1,950 mark, which is the Fibonacci 0.618 retracement of the above drop. The yellow metal faces immediate price resistance around $1,910, followed by $1,960 and higher while interim support is now fixed at $1,972 level respectively. A break above $1,910 will push prices through $1,920 levels and confirm that the counter trend is on its way.

Trading plan:

Potential rally towards $1,950 against $1,870

Good luck!