FX.co ★ Trading plan for Gold on June 02, 2022

Technical outlook:

Gold prices grew to $1,858-59 on Thursday after carving a higher low around $1,828 on Wednesday. The recent rally is developing in line with our projections and bulls are looking set to push through $1,920 going forward. Ideally, prices should stay above $1,828 which is now the interim support as marked here.

Gold has been unfolding its counter-trend rally from the $1,786 lows. The yellow metal has already terminated its first and second legs at around $1,870 and $1,828 respectively. If the above structure holds well, the metal is already on its way towards $1,920 as the third leg has resumed against $1,828. Intraday dips can be expected though.

Gold prices have now carved a lower degree upswing between $1,828 and $1,858. Ideally, prices would retrace lower from here and find potential support at around $1,840 in the near term. Bulls are then expected to be back in control pushing prices through $1,920 going forward. Alternatively, prices might first drop through $1,820 before resuming higher again.

Trading plan:

Potential rally towards $1,920 against $1,800

Good luck!