Spot gold may drop to $1,758; downtrend resumed
- The break confirmed a continuation of the downtrend from $1,876.90
SINGAPORE: Spot gold may drop to $1,758 per ounce, as it has broken a support at $1,780 and a rising trendline.
The break confirmed a continuation of the downtrend from $1,876.90 and a reversal of the uptrend from $1,720.49. Over the next few days, the metal may slide towards $1,720.49.
The current moderate bounce is regarded as a weak pullback towards the trendline. Unless gold could stand firm above the trendline, the bearish outlook will remain unchanged.
On the daily chart, the metal is riding on a wave C, which is capable of travelling to $1,632. The lower trendline of a wedge points at a higher target of $1,700.
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Based on the weak bounce triggered by the former support at $1,783, gold may fulfil these targets very soon.
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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