SINGAPORE: Spot gold may retest a support at $1,938 per ounce, a break below which could open the way towards $1,919-$1,929 range.
The metal is riding on a wave c, which may extend to $1,929, its 161.8% projection level. A calculation based on the range of the wave 4 suggests a similar target.
A further bounce from the current level may be limited to a resistance at $1,957, which is jointly provided by 123.6% projection level and a falling trendline.
On the daily chart, gold has come to a support of $1,939, which is enhanced by a similar one established by a rising trendline. These supports have collaborated to trigger a bounce.
Spot gold may retest resistance at $1,985
Even though a break below $1,939 is almost certain, the timing of such a break remains unclear.
Either Friday or the beginning of next week could see such break.
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