- This wave is capable of travelling to $1,684.37
SINGAPORE: Spot gold may break a support at $1,786 per ounce and fall into $1,758-$1,774 range.
The bounce triggered by the support has been almost reversed. The reversal signals a continuation of the downtrend. With one more push, the metal would be able to break a rising trendline and fall towards $1,758.
A break above $1,803 could confirm the extension of the bounce towards $1,817-$1,831 range.
On the daily chart, the metal is riding on a wave C, the third wave of a three-wave cycle from the Aug. 7, 2020 high of $2,072.50.
This wave is capable of travelling to $1,684.37. It is disrupted by a consolidation in the neutral range of $1,773-$1,800.
The contract is expected to break $1,773 and fall towards $1,739. A break above $1,800, however, could open the way towards $1,828.
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