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.
Prepared by
The Profinacademy.com Team
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