SINGAPORE: Spot gold may gain more into a range of $2,038 to $2,045 per ounce, driven by a powerful wave 3. This wave started at $1,949.55 and has briefly travelled above its 161.8% projection level of $2,021.
It is likely to extend into $2,055-$2,066 range, based on its strong momentum.
The strong gain on Tuesday confirmed a bullish pennant from $1,809.27.
The pattern indicates a much higher target of $2,150.
Support is at $2,011, a break below could be followed by a correction to $2,000.
Spot gold may retest resistance at $1,994 after correction
The correction will be classified as a pullback towards the pennant, unless it could extend below $1,983.
On the daily chart, gold has broken a key resistance at $2,004.
The break opened the way towards $2,134-$2,175 range.
A realistic target zone is from $2,046 to $2,069.
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