SINGAPORE: Spot gold may drop towards $1,850 per ounce, as it faces a strong resistance zone of $1,872-$1,879.
Each of these resistances could be strong enough to trigger a decent correction. When working together, they become more powerful.
A rising trendline establishes a resistance around $1,872 as well, making the resistance zone a strong barrier.
Unless the market sentiment proves to be extremely strong, or a piece of breaking news comes out, the rise may pause around $1,879.
On the daily chart, the metal has been riding on a steady uptrend within a rising channel, which indicates a target of $1,930.
However, the resistance at the Nov. 16, 2021 high of $1,876.90 should not be ignored, around which, a correction or a consolidation is likely to occur.
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.