Spot gold may fall into $1,832-$1,845 range
- It is still too early to conclude that the downtrend from $1,959.01 has resumed, even though it may eventually extend to $1,769.
SINGAPORE: Spot gold is expected to fall into a range of $1,832 to $1,845 per ounce, as it has completed a bounce from the Jan. 18 low of $1,809.90.
The bounce lost its momentum around a resistance at $1,867, the 38.2% retracement on the downtrend from $1,959.01 to $1,809.90. Either this bounce or its first leg is over.
A break above $1,875 could lead to a gain into a zone of $1,884-$1,902. On the daily chart, the doji forming on Thursday suggests a small chance of a further gain to $1,886, the 23.6% level of a wave C from $1,959.
The metal is likely to pull back towards a support at $1,841 first.
It is still too early to conclude that the downtrend from $1,959.01 has resumed, even though it may eventually extend to $1,769.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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