Spot gold may revisit Thursday low of $1,778.80

SINGAPORE: Spot gold may revisit its Thursday low of $1,778.80 per ounce, as the correction from the Tuesday high of $1,809.46 looks incomplete.

The correction may consist of three waves. The current wave b is expected to end around $1,801, which is pointed by a falling trendline.

This wave will be reversed by a downward wave c. Only a break above $1,811 could confirm a continuation of the uptrend towards $1,827.

Spot gold may retreat to $1,773

On the daily chart, the contract is consolidating around a key resistance at $1,800.

The consolidation could be due to the completion of a rise from $1,684.37.

Strong as it is, the rise is regarded as a part of a big wave C from $1,916, which may extend into a range of $1,520-$1,671.

A break below $1,773 could confirm the resumption of the wave C while a break above $1,810 could signal the extension of a big wave B from the March 8 low of $1,676.10.

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