SINGAPORE: Spot gold may retrace to $2,019 per ounce, as it faces a strong resistance at $2,073.
The resistance is identified as the 100% projection level of an upward wave (c) from $1,878.49, which may either end around $2,073 or extend a lot above this level.
Regardless of its ending point, this wave is subject to a partial reversal first, as the resistance is strengthened by another one at $2,065, the 161.8% projection level of a bigger wave C from $1,753.30.
A break above $2,073 could lead to a gain to $2,102. On the daily chart, gold is facing a resistance at $2,072.50, the 2020 high.
This resistance is working together with the other two on the hourly chart to stop the rise.
Most likely, the metal would retrace towards $2,019.
This retracement will serve as a preparation for a surge above $2,072.50.
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