SINGAPORE: Spot gold may test a support at $1,719 per ounce, a break below which could cause a fall into $1,677.77-$1,697 range.
The fall on April 9 is so deep that it suggests a completion of the bounce from $1,677.70.
A presumed double-bottom pattern forming around $1,678 looks doubtful. The rise from $1,677.70 could be a part of a flat pattern.
A flat would mean a drop towards $1,677.70.
Given that gold has broken a support at $1,744, it is likely to fall to $1,719.
A break above $1,744 may lead to a gain to $1,758.
A further gain could confirm a double-bottom, and a bullish target of $1,852 will be established accordingly.
On the daily chart, it looks like gold is pulling back towards a falling trendline. The pullback may extend to $1,693. Chances are the metal may drop more to $1,651 once it reaches $1,693.
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.
Comments
Comments are closed for this article.