Spot gold may test support at $1,811

SINGAPORE: Spot gold may test a support at $1,811 per ounce, a break below which could cause a fall into $1,789-$1,797 range.

The support is identified as the 200% projection level on an upward wave c from $1,727.45. This wave has traveled below a pivotal level of $1,833. It has a better chance of extending into $1,775-$1,789 range.

A break above $1,833 could lead to a gain to $1,861. On the daily chart, the fall from the Jan. 6 high of $1,959.01 has been so deep that it strongly suggests a resumption of the downtrend from $2,072.50.

Eventually, the trend may extend to $1,764.29.

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