Spot gold may test support at $1,801
- The bounce on Feb. 5 is classified as a pullback towards $1,805. Eventually, the metal may break this level and fall to $1,769.
SINGAPORE: Spot gold may test a support at $1,801 per ounce, a break below which could cause a fall to $1,783.
The metal is riding on a wave C from $1,875.26, which may travel to $1,726, its 100% projection level.
A bearish pennant points at $1,726 as well.
The support at $1,783 triggered a bounce which seems to have ended around a resistance at $1,818.
The downtrend may have resumed.
A break above $1,818 could lead to a gain to $1,840. On the daily chart, gold has deeply pierced below a support at $1,805, the 50% projection level of a downward wave C from $1,959.01.
The bounce on Feb. 5 is classified as a pullback towards $1,805. Eventually, the metal may break this level and fall to $1,769.
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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