Spot gold may rise more to $1,785

SINGAPORE: Spot gold may rise more to $1,785 per ounce, as it has cleared a resistance at $1,744.

The current rise is presumed to be against the downtrend from $1,959.01.

A retracement analysis reveals a target range of $1,785-$1,852.

The metal is consolidating moderately around the March 18 high of $1,755.25, which is also the neckline of a double-bottom.

This pattern suggests a target around $1,852.

A break below $1,744, which has become a pivotal support, would not only open the way towards $1,719, but also indicate a resumption of the downtrend from $1,959.

On the daily chart, gold is rising towards a resistance at $1,769, the 61.8% projection level of a downward wave C from $1,959.01.

This wave may have completed around $1,693. Even if the trend from the Aug. 7, 2020 high of $2,072.50 has not reversed, the current bounce is expected to be as strong as the one from the Nov. 30, 2020 low of $1,746.29.

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