Gold has managed to stage an impressive rally post FOMC on Wednesday July 28, 2021 towards $1832 levels. The yellow metal might take a pause from here and retrace towards $1820 at least before resuming its rally towards $1850 levels, going forward.
Gold had earlier dropped from $1916 levels through $1751 sub dividing into 5 waves, marking an impulse wave. Ideally, an impulse wave is followed by a correction on the opposite side. Gold might be producing a corrective wave A-B-C towards $1850 levels for now.
Also note that Gold has managed to carve Waves A and potential B around $1834 and $1789 levels respectively. If the above is correct, Wave C higher has already resumed since $1789 lows and bulls are looking poised to push through $1850 at least.
Alternately, a drop below $1789 from here would confirm that a lower top has been carved around $1834 levels and that Gold might continue drifting lower towards $1650 levels in the next several weeks.
Traders might want to remain flat for now and wait for a potential corrective drop towards $1820 levels at least. Bulls might be poised to resume rally from there and push through $1834 highs.
Prepared by
The Profinacademy.com Team
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