Spot gold biased to drop to $1,757

SINGAPORE: Signals are mixed for spot gold , but it is biased to retrace to $1,757 per ounce.

There is little doubt that gold has become exhausted in its rally from the Aug. 15 low of $1,589.69. However, a bearish reversal has not been confirmed as the metal has been touching higher highs, and there is no obvious lower lows as well.

A rising wedge has been under formation since Sept. 13, and the price may bounce within the two trendlines of the pattern. The lower trendline points to a target at $1,757.

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