FX.co ★ Trading plan for Gold for May 05, 2022

Technical outlook:

Gold prices rallied post FOMC on Wednesday after carving a low of around $1,860. The rally continued through the early Asian session on Thursday hitting the $1,903 mark before pulling back. The yellow metal is seen to be trading close to $1,900 levels at this point in writing carving an intraday higher low around $1,889.

Gold prices can drop through $1,880 before resuming a rally towards $1,920 at least, as marked on the 4H chart here. Also, note that initial resistance is seen around $1,920, and bulls will remain poised to push through that mark. The yellow metal has moved in line with earlier projections and potential remains for a further rally toward $1,940-50.

Gold prices recently dropped from the $1,998 highs through the $1,850 lows, carving a meaningful downswing. The metal is currently working on the above downswing and is looking to retrace through $1,940, which is close to the Fibonacci 0.619 retracement of the above drop. Bears will be inclined to come back in control thereafter.

Trading plan:

Potential rally through $1,940 against $1,850

Good luck!