SINGAPORE: Spot gold may break a resistance at $1,832 per ounce and rise to $1,842, driven by a wave C.
This wave is expected to travel into a range of $1,842-$1,874.
The pause around $1,832 will be temporary. A retracement analysis on the fall from $1,916.40 to $1,749.20 reveals a failure of the metal to break the 50% level of $1,833 in its first attempt on July 15.
However, gold may succeed in its current attempt, as the wave C has a fierce character and may easily overcome this barrier.
Spot gold to retest support at $1,789
Support is at $1,822, a break below which could cause a fall to $1,810. On the daily chart, the metal is riding on a wave c from $1,749.20, which is capable of travelling into $1,840-$1,897 range. In its full capacity, the wave c could extend to $1,988.
The pattern from the Nov. 30, 2020 low of $1,764.29 looks like an inverted head-and-shoulders, which will be confirmed when gold goes above $1,932.
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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