Spot gold may test resistance at $1,881
- The metal is expected to rise towards $1,889. Wave pattern suggests the progress of a wave X, which may travel to a higher level of $1,918.
SINGAPORE: Spot gold may test a resistance at $1,881 per ounce, a break above which could lead to a gain to $1,899.
The resistance is identified as the 86.4% retracement on the downtrend from $1,898.81 to $1,764.29. A big part of the trend has been reversed.
Chances are the high of $1,898.81 will be revisited.
Immediate support is at $1,859, a break below which could cause a drop into $1,832-$1,847 range.
On the daily chart, a retracement analysis on the fall from $1,965.33 to $1,764.29 reveals that gold briefly pierced above a resistance at $1,865, the 50% level.
The metal is expected to rise towards $1,889. Wave pattern suggests the progress of a wave X, which may travel to a higher level of $1,918.
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