Spot gold may revisit July 23 low of $1,789.98

SINGAPORE: Spot gold may revisit its July 23 low of $1,789.98 per ounce, as it failed again to break a resistance at $1,832.80.

The failure signals the completion of the uptrend from $1,749.20, or the extension of a correction from the July 15 high of $1,833.65.

In either of the cases, gold may drop to $1,789. Immediate resistance is at $1,822, a break above which could lead to a gain into $1,832-$1,853 range.

On the daily chart, trending signals turned neutral, as gold lost its bullish momentum before testing a resistance at $1,840. Signals may become clearer when the metal gets out of the range of $1,784-$1,840.

Over the next few days, gold may remain sideways within the range.