SINGAPORE: Spot gold looks neutral in a range of $1,802-$1,822 per ounce, and an escape could suggest a direction.
Following its two failures to break a resistance at $1,833, gold may revisit its July 23 low of $1,789.98. However, this target will only be confirmed when gold breaks $1,802.
A break above $1,822 may lead to a gain to $1,832. A retracement analysis on the fall from $1,916.40 to $1,749.20 marks a bigger neutral range from $1,789 to $1,833.
The trending signal will become clearer when the metal gets out of the bigger range. On the daily chart, the nature of the rise from $1,749.20 remains unclear.
The rise has been presumed to be an extension of the uptrend from the March 31 low of $1,677.61. Following its two failed attempts to break a resistance at $1,840, the presumption looks doubtful.
Until the metal falls below $1,784, the continuation of the downtrend from the June 1 high of $1,916.40 will not be confirmed either. Charts are not available in reports received in email box through “Alert”. To get charts, use the news code to retrieve the original reports.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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