SINGAPORE: Spot gold may slide further into a range of $1,808-$1,816 per ounce, following its failure to break a resistance at $1,844.
The resistance is surprisingly stronger than expected, as gold was supposed to climb straightaway to $1,854 after breaking $1,836.
The current bearish momentum could be strong enough to drive the metal down further.
A resumption of the uptrend will only be confirmed when gold breaks $1,836.
On the daily chart, there was a false break above a resistance at $1,831.
Spot gold may test resistance at $1,836
The target zone of $1,849-$1,863 has to be temporarily aborted.
Theoretically, gold could fall to $1,803. But this target looks really doubtful as the whole uptrend from $1,684.37 still remains steady within a rising channel.
The current correction could simply be a hiccup in the process of a good rally.
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