SINGAPORE: Spot gold looks neutral in a range of $1,318-$1,327 per ounce and an escape could suggest a direction.
The range is formed by the 23.6 percent and the 38.2 percent retracements on the downtrend from $1,366.07 to $1,302.61. A break above $1,327 could lead to a gain to $1,334.
However, the bias seems to be towards the downside, as suggested by a double-top, which formed around $1,366. Even though the pattern has not been confirmed, it still indicates that gold could eventually fall below the March 1 low of $1,302.61.
On the daily chart, gold has been remaining below a resistance at $1,330, the 14.6 percent level of the uptrend from $1,122.35 to $1,366.07.
The longer it hovers below this barrier, the more likely it falls to $1,309.
No information in this analysis should be considered as being business, financial or legal advice.
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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