FX.co ★ Trading plan for Gold for May 04, 2022

Technical outlook:

Gold prices might have carved an interim low around $1,850 levels on Tuesday. The yellow metal bounced back sharply thereafter, raising through $1,880 levels before finding resistance again. Prices have eased off a bit and the yellow metal is seen to be trading close to $1,864 at this point in writing after carving a higher low at $1,861.

Gold has also bounced off its trend line support connecting $1,750 and $1,783 supports. The entire drop between $2,070 and $1,850 might be seen as a corrective zigzag. Hence, the probability remains for a bullish resumption from here. Please note that $1,920 potential resistance remains critical going forward. A break there would encourage a bullish structure.

On the flip side, if prices break below the trend line support and $1,850, it could open the door to testing the $1,800 and $1,780 support levels in the near term. It would also confirm that the larger degree trend has reversed and Gold prices are heading towards $1,676 in the next several trading sessions.

Trading plan:

Potential rally towards $1,930 and $1,950 against $1,780

Good luck!