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.
Gold wave structure indicates that it has now terminated potential Wave 4 and is preparing to reverse lower towards $1625 as Wave 5 unfolds. Also note that the yellow metal has tested fibonacci 0.618 retracement of Wave 3 as labelled on the chart here.
Earlier, Gold had carved Waves 1, 2 and 3 around $1802, $1875 and $1676 levels respectively. Since then, a corrective flat pattern seems to have unfolded, labelled as Wave A-B-C. The pattern looks complete at $1799 or might test $1800 handle.
If the above structure is correct, Gold might turn lower from here and continue to remain under the control of bears through $1625 levels. Immediate price support is seen just below $1760 and a break lower would accelerate the drop.
Alternately, if bulls manage to push through $1799 highs, Gold might test $1807/10 levels before finding resistance again. Either way, a bearish reversal seems to be imminent from current levels or from $1807 levels respectively.
Only a sustained break above $1875 would change the above bearish structure. Watch out for intraday resistance today around $1785/86 levels and a potential bearish reversal from there.
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 might have carved a lower top around $1798 levels on April 22, 2021. The yellow metal had then dropped through $1762 levels yesterday before staging a counter trend rally. A lower top might be in place at $1790 levels today. A drop below $1760 confirms a reversal is underway.