Markets

Spot gold target of $1,818 intact

  • A drop below the Jan. 27 low of $1,830.80 could confirm a break below the support and a target of $1,805.
Published January 29, 2021

SINGAPORE: A bearish target of $1,818 per ounce remains unchanged for spot gold, despite its bounce on Thursday.

The bounce is regarded as a part of a wave C from $1,874.86, which is expected to travel into a range of $1,783-$1,818, formed by its 61.8% and 38.2% projection levels.

The metal failed a few times to break $1,840. It may succeed this time. Resistance is at $1,853, a break above which could lead to a gain into $1,864-$1,875 range.

On the daily chart, the bounce on Thursday could be the last effort of bulls to hang on around the support at $1,841. The long-shadowed spinning top forming on this day indicates a heavy selling pressure.

A drop below the Jan. 27 low of $1,830.80 could confirm a break below the support and a target of $1,805.

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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