FX.co ★ Trading plan for Gold on May 23, 2022

Technical outlook:

Gold prices climbed over $1,865 on Monday before finding resistance and pulling back. The yellow metal has taken out next-in-line resistance around $1,858 with relative ease. Also, note that the Fibonacci 0.382 retracement of the downswing between $1,998 and $1,786 has been tested. A corrective pullback should be on its way through $1,815 soon.

Gold prices earlier dropped from the $1,998 highs through the $1,786 lows, carving a meaningful downswing. Since then, bulls have been working on a potential counter-trend rally and might have completed the first wave at around $1,865. If the above is correct, the decline of the second wave is underway to the $1,810-15 zone before turning higher again.

Gold prices are expected to push through the $1,915-20 mark in the next few trading sessions as the last wave of counter-trend is progressing. Also, note that $1,920 is close to the Fibonacci 0.618 retracement of the above downswing. The high probability remains for a turn lower thereafter as bears take control back and drag below $1,676.

Trading plan:

Potential rally through $1,920 against $1,780

Good luck!