Spot gold targets $1,889

SINGAPORE: Spot gold may test a support at $1,915 per ounce, with a good chance of breaking below this level and falling towards $1,889.

The drop on April 22 confirmed a continuation of the downtrend from the April 18 high of $1,998.10. This trend may extend to $1,915 first, the bottom of wave B, and then towards the March 29 low of $1,889.45.

The uptrend from $1,889.45 may continue if the metal manages to stabilize around $1,915 and rise thereafter. Resistance is at $1,929, a break above which could lead to a gain into $1,938-$1,945 range.

On the daily chart, the metal is poised to break a support at $1,925 and fall towards $1,890.

Gold heads for weekly fall as yields, dollar climb

The current fall is regarded as a continuation of the downtrend from $2,069.89, instead of a previous downtrend from the 2020 August high of $2,072.50.

Driven by a wave c, the fall may either end around $1,890 or extend far below this level.