Technical outlook:
Gold dropped to $1,616 on Thursday before finding support at around $1,614 and turning from it, according to the H4 chart. The precious metal rallied through $1,648 intraday on Friday and is seen to be trading close to the $1,646 mark at this point in writing. Bulls might be looking to hold prices above $1,616.
Gold might be still trading on the bearish boundary between $1,730 and $1,616. The 0.618 Fibonacci retracement is seen passing through the $1,686 mark, which could be the next potential target for bulls. The metal could face resistance there and turn lower towards $1,600 and $1,550 at least.
Gold is facing immediate resistance at $1,670 and a push higher could open the door to a rally toward the $1,685-90 zone. Furthermore, if bulls are able to push above the $1,700 mark, we could see the price clearing $1,735 resistance with relative ease. Quotes should stay above $1,614 to keep the above bullish structure intact though.
Trading plan:
Potential rally through $1,685 against $1,614
Good luck!
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