Gold has managed to reach up to $1798 levels in the past few trading sessions. The rally might be seen as Wave Y within a W-X-Y complex correction. Also note that the yellow metal has almost tested the fibonacci 0.618 retracement of potential Wave 2; bearish reaction remains high probability.
Gold has been dropping since $1960 highs on January 06, 2021. It has already terminated Waves 1, 2, and 3 around $1800, $1875 and $1676 mark respectively. Since then, it has been carving a complex structure to terminate Wave 4.
The yellow metal seems to have unfolded as a 3-3-3 (W-X-Y) combination and terminated around $1798 yesterday. If the above proposed wave structure holds well, Gold should turn lower soon towards $1650 as Wave 5 unfolds.
Immediate support is at $1765 while resistance is around $1820 levels respectively. A break below $1765 would confirm that a meaningful top is in place around $1798 levels. Furthermore, a break below the counter trend line support would be encouraging to bears.
Alternately, if Gold continues to rally past $1820 mark, it might indicate a potential threat to $1875 resistance, going forward. At this point, a continued rally remains remote probability and that bears are expected to regain control soon.
Gold remains vulnerable for a bearish turn from current price action ($1790). It is not shown here, but also note that RSI on 4H chart has produced a bearish divergence. Watch out for a break below $1765 in the near term.
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.