Spot gold may bounce to $1,797
- These supports are working together to end the downtrend.
SINGAPORE: Spot gold may bounce to $1,797 per ounce, as it has stabilized around a support at $1,769. Amid the widespread bearish sentiment, technical signals suggest an optimistic outlook that the drop from $1,916.40 could be over.
In the next few days, the metal is expected to keep recovering from the Thursday low of $1,766.29. A break above $1,797 could open the way towards $1,825.
On the daily chart, a retracement analysis on the fall from $2,072.50 to $1,678.40 reveals a support at $1,771, which is close to $1,769 on the hourly chart.
These supports are working together to end the downtrend.
The pattern from Nov. 30, 2020 low of $1,764.29 looks like an inverted head-and-shoulders. The right shoulder is still developing. This is a bottom pattern. It has strong bullish indication.
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