SINGAPORE: Spot gold may bounce again to $1,825 per ounce before turning around and falling towards its Feb. 28 low of $1,804.02.
The metal is trying to stabilise around a support of $1,812, which triggered a bounce that may consist of three waves. So far, only two have unfolded.
The wave c is expected to travel to $1,825. Given that so much of the rise from $1,804.20 has been reversed, this low is highly likely to be revisited.
A break above $1,825 would make this target invalid. On the daily chart, the doji on Wednesday around a support at $1,813 complicates the picture. The pattern is a leading indicator of a possible bounce.
It also suggests the formation of a flat or wedge.
Spot gold may end bounce around $1,853 and fall
A bearish target zone of $1,768-$1,793 has to be temporarily aborted.
It will be resumed only when gold falls below $1,804.20.
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