24.05.202213:59 Forex Analysis & Reviews: Trading plan for Gold on May 24, 2022

Technical outlook:

Gold prices dropped through the $1,847 low during the New York session on Monday after hitting the $1,865 highs earlier. The yellow metal could meet bids coming in as prices have pushed through the $1,860 mark at this point in writing. Bears would be inclined to take control back now and drag lower towards the $1,820 level, going forward.

Gold prices have managed to carve an upswing between $1,786 and $1,865 recently. Also, note that bulls have taken out initial resistance around $1,858 already. Ideally, prices should produce a corrective drop from here before resuming their rally towards the $1,915-20 zone in the next several trading sessions.

Gold prices should stay below $1,865 and drag through $1,816, which is the Fibonacci 0.618 retracement of the recent upswing as marked on the 4H chart here. Once complete, bulls will be poised to take control back and push through the $1,915-20 zone, which is the Fibonacci 0.618 retracement of the earlier downswing between $1,998 and $1,786 respectively.

Trading plan:

Potential rally through $1,915 against $1,781 in medium term.

Good luck!