SINGAPORE: Spot gold may bounce more to $1,853 per ounce, as it has more or less broken a resistance at $1,842. The next resistance will be at $1,853, a break above which may lead to a gain to $1,867.
However, the downtrend from $1,890 looks steady.
It is expected to eventually extend to $1,793. Based on this observation, the current bounce could hardly extend beyond $1,853.
Instead, it may end around this level and be reversed by the subsequent drop.
A break below $1,830 could signal the continuation of the downtrend.
On the daily chart, the long-shadowed doji on Feb. 17 confirms a stabilisation of the market around a support of $1,813. Given that the metal has broken a resistance at $1,833, it may bounce to $1,858.
The downtrend may resume upon the completion of this bounce, as a bearish flag suggests a target of $1,793.
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