Gold potential remains up to $1890/1900 handle

12 feb 2021

Gold bears remain in control since $2075 as they have carved a series of lower highs and lower lows. The recent resistance is seen at $1965 and until prices stay below that mark, the metal is expected to push lower towards $1700 and further. The recent rally from $1785 seems to be a part of the counter trend, which can extend through $1890/1900 mark before resuming lower again. Also note that fibonacci 0.618 retracement of the entire drop between $1965 and $1785 is seen through $1900 zone. Formidable resistance can be expected if prices manage to reach there and downside potential remain through $1550.

Short against $1965, towards $1750, $1650 and beyond.