Gold might have carved an interim top around $1810 on Wednesday and is retracing lower towards $1760 and up to $1730 mark in the short term. The yellow metal is facing intraday resistance around $1798/1800 and a break below $1780 would encourage bears further.
Looking at the wave structure, Gold prices had dropped between $1916 and $1677 mark, unfolding into 5 waves. Ideally a 5 wave move s followed by a 3 wave corrective wave in the opposite direction. The yellow metal might be in the corrective wave and could push towards $1825/30 mark.
Also note that $1825/30 is the fibonacci 0.618 retracement of the entire drop between $1916 and $1677 as labelled on the above chart. Furthermore, the trend line resistance is also passing through the $1825 zone. High probability remains that $1825/30 zone would offer a formidable resistance going forward.
Immediate wave counts also suggest that Gold might drop to $1760 mark before resuming its rally. It is the fibonacci 0.382 retracement of the rally between $1677 and $1810 and could provide bounce to proceed towards $1825/30 mark.
Alternately, a consistent break below $1705/06 will confirm that Gold is headed lower towards $1650 and further.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.