Spot gold may pull back into $1,817-$1,831 range; cautiously bearish
- The support is identified as the 23.6% retracement of the uptrend from $1,757.63 to $1,876.90
SINGAPORE: Spot gold may drop into a range of $1,817 to $1,831 per ounce, as it has broken a support at $1,849.
The support is identified as the 23.6% retracement of the uptrend from $1,757.63 to $1,876.90.
The next support will be at $1,831, a break below which could cause a fall to $1,817.
A break above $1,849, now a resistance, may not lead to an impressive gain, which could simply be a part of the fall from $1,876.90.
Most likely, such a gain would be limited to $1,859. On the daily chart, the pullback towards a falling trendline may extend to $1,828.
Spot gold neutral, with downside bias The current speculation is the uptrend may resume around $1,828 upon the completion of the pullback.
A break below this support will not only cause a fall to $1,800 but also signal a reversal of the uptrend from $1,684.37.
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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