SINGAPORE: A bearish target at $1,497 per ounce remains unchanged for spot gold, as suggested by a projection analysis and the daily RSI.
The metal faces a strong resistance at $1,546, the 150% projection level of an upward wave (c) from $1,265.90. It failed a few times to overcome this barrier.
The bearish divergence on the daily RSI suggests gold becomes very shaky below this resistance. It could be too exhausted to retest this barrier.
Instead, gold is testing a support at $1,524, which does not seem to hold. It could be much likely to fall to $1,497 than to rise towards $1,546.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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