SINGAPORE: Spot gold is expected to revisit its Sept. 28 low of $1,613.60 per ounce, as suggested by a pennant.
The pennant has been confirmed, indicating a target around $1,580.
So much of the bounce of from $1,613.60 has been reversed that it is almost impossible to extend towards $1,729.39.
The metal may fail to break $1,614 in its first attempt, as this support may trigger a bounce much weaker than the one that ended at $1,729.39.
Resistance is at $1,629, a break above which could lead to a gain to $1,641. On the daily chart, a projection analysis reveals a support at $1,611, near $1,614 (hourly chart).
Spot gold poised to retest support at $1,641
Chances are these supports may work together to temporarily stop the fall, even though the downtrend remains firm within a falling channel.
A break below $1,611 would confirm the continuation of the downtrend towards $1,565-$1,582 range.
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