Markets

Spot gold may retest support at $1,840

  • Signals on the hourly chart suggests a downside bias.
Published February 1, 2021

SINGAPORE: Spot gold may retest a support at $1,840 per ounce, a break below which could cause a fall to $1,818.

The rise from the Jan. 18 low of $1,809.90 is classified as an extension of the wave B, the second wave of a three-wave cycle from $1,959.01.

This wave is expected to be reversed by a downward wave C which could have just started. A projection analysis on the wave C reveals a resistance at $1,865, a break above which could lead to a gain into the range of $1,884-$1,902.

On the daily chart, gold is stuck in a neutral range of $1,841-$1,886,formed by the 38.2% and the 23.6% projection levels of a downward wave C from $1,959.01.

Signals on the hourly chart suggests a downside bias.

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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