Gold is likely to complete its down Gartley which began from $1785 lows over the last week. The primary impulse boundary is between $1965 and $1802, which is marked as Wave 1 on the chart here. Wave 2 might have terminated around $1875 levels or is unfolding as an expanded flat.
If Wave 2 is in place around $1875 levels, Gold shall continue lower from here and push through $1675 and further in the coming weeks. Alternately, if Wave 2 is taking a more complex shape, we might witness a rally towards $1890 levels.
Also note that $1890 is very close to the Fibonacci 0.618 retracement of earlier drop between $1965 and $1802 levels respectively. Furthermore, a Fibonacci convergence is also seen towards $1895/95 levels, which can produce a strong bearish reaction.
Bulls might remain determined to produce a short term rally towards $1890 zone before giving in to bears. For the above structure to hold, prices must stay above $1875 interim support. Bears might be back in control from close to $1890 zone.
Once the down Gartley structure is complete, Gold is expected to turn bearish again with risk at $1965 levels. Bears would remain in control until prices stay below $1965 highs going forward. A push through $1965 would open doors for a test of $2075 levels.
Gold remains bullish over the short term until prices hit resistance through $1890 zone. Thereafter the metal turns bearish against $1965 levels respectively. Trading opportunities are seen to be on both sides for now.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.