SINGAPORE: Spot gold is expected to break a support at $1,660 per ounce, and fall into $1,644-$1,648 range. The contract is riding on a wave C from $1,765.39, which is capable of travelling into $1,635-$1,654 range.
A projection analysis on the downtrend from $1,731.69 reveals more accurate levels that have been controlling the fall.
Immediate resistance is at $1,667, a break above which could lead to a gain into $1,671-$1,675 range.
On the daily chart, the downtrend looks steady within a falling channel, which points at $1,611.
A bearish flag has been confirmed, suggesting a similar target.
The support at $1,657 is working with the one at $1,660 on the hourly chart to temporarily stop the fall.
Spot gold hits lowest level since March 2021
It is not very clear if a bounce could be triggered.
The strong bearish momentum on Thursday decreases the chance of the bounce.
Most likely, such a bounce would be limited to $1,686, if it occurs.
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