Spot gold may retreat towards $1,833
- The fall from $1,959.01 is so deep that it is classified as a continuation of the preceding downtrend from the Aug. 7, 2020 high of $2,072.50.
SINGAPORE: Spot gold may retreat towards a support at $1,833, as it faces a resistance at $1,861 per ounce.
The resistance is identified as the 114.6% projection level of a wave c from $1,927.45. It is strengthened by another one at $1,862, the 50% retracement of the uptrend from $1,764.29 to $1,959.01.
The fall from $1,959.01 is so deep that it is classified as a continuation of the preceding downtrend from the Aug. 7, 2020 high of $2,072.50.
A break above $1,861 could lead to a gain to $1,869. On the daily chart, the bounce from $1,764.29 only managed to reverse 61.8% of the fall from $2,072.50.
This relation suggests a possible extension of the downtrend from $2,072.50. Eventually, the metal could fall below $1,764.29.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.