Spot gold may fall towards $1,789
- The uptrend from $1,749.20 was thought to have continued on July 14
SINGAPORE: Spot gold may break a support at $1,813 per ounce and fall towards $1,789, following its failure to break a resistance at $1,833.
The bullish momentum looks weak, as gold repeatedly failed to break two key resistances at $1,813 and $1,833, respectively.
The uptrend from $1,749.20 was thought to have continued on July 14.
The deep fall on July 16 immediately ended this continuation. The depth of the fall even suggests a reversal of the uptrend.
A retracement analysis on the uptrend reveals a target range from $1,781 to $1,801, which engulfs $1,789 level. Resistance is at $1,821, a break above which may lead to a gain to $1,833.
On the daily chart, the metal failed to break a resistance at $1,840. The failure indicates a consolidation below this level over the next few days.
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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