SINGAPORE: Spot gold still targets $1,758 per ounce, as it has deeply pierced below a support at $1,780 and broken a rising trendline.
The break confirmed a reversal of the uptrend from the low of $1,720.49. Over the next few days, the metal may slide towards this low.
The consolidation between $1,780 and $1,817 only marked the completed first leg of the downtrend from $1,876.90. The third leg is developing towards $1,720.
A break above $1,799 may lead to a gain to $1,877. On the daily chart, a wave C is unfolding towards $1,632. It is the third wave of a downtrend from $2,072.50.
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The lower trendline of a wedge points at a higher target of $1,700. Strategically, these targets will be confirmed when gold falls below the Nov. 30 low of $1,768.90, as the current sideways move could be interpreted as a dissipation of the bearish momentum as well.
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