SINGAPORE: Spot gold may test a support zone of $1,999-$2,003 per ounce, a break below which could open the way towards $1,975-$1,992 range.
The downtrend from $2,072.19 has resumed, as confirmed by the drops over the past two days.
Riding on a wave c, the trend could extend to $1,975.
Resistance is at $2,016, a break above which could lead to a gain into $2,020-$2,027 range.
On the daily chart, a bearish divergence on the daily RSI is interpreted as a strong signal of a deep correction.
More than a simple correction, the following drop could be forming a very bearish triple-top that developed from the August 7, 2020 high of $2,072.50.
The pattern indicates an aggressive target of $1,600.