SINGAPORE: Spot gold may break a support at $1,919 per ounce and fall into a range of $1,883-$1,905, following its failure to break a resistance at $1,942 per ounce.
A bullish target of $1,956-$1,969 has been temporarily aborted and will only be resumed when gold breaks $1,942. The metal has broken a short trendline.
It is expected to fall towards the lower trendline, which points at a target of $1,905.
Given that the uptrend from the Dec. 22, 2022 low of $1,783.30 has not been disrupted by a decent correction, the current fall could be deep enough to extend below the lower trendline.
Spot gold still targets $1,956-$1,969 range
On the daily chart, a bearish engulfing pattern formed between Wednesday and Thursday, signalling a reversal of the uptrend from $1,758.18.
The drop is tentatively classified as a pullback towards $1,898.
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