SINGAPORE: Spot gold may break a support at $1,813 per ounce and fall towards $1,789, following its failure to break a resistance at $1,833.
The bullish momentum looks weak, as gold repeatedly failed to break two key resistances at $1,813 and $1,833, respectively.
The uptrend from $1,749.20 was thought to have continued on July 14.
The deep fall on July 16 immediately ended this continuation. The depth of the fall even suggests a reversal of the uptrend.
A retracement analysis on the uptrend reveals a target range from $1,781 to $1,801, which engulfs $1,789 level. Resistance is at $1,821, a break above which may lead to a gain to $1,833.
On the daily chart, the metal failed to break a resistance at $1,840. The failure indicates a consolidation below this level over the next few days.
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