Spot gold may retest resistance at $1,746
- It is expected to rise towards $1,769. A drop from the current level will be regarded as a pullback towards $1,724.
SINGAPORE: Spot gold may retest a resistance at $1,746 per ounce, a break above which could lead to a gain to $1,761-$1,783 range.
As long as the metal hovers above $1,727.10, it is likely to extend its gains into the range of $1,761-$1,783. A break below $1,727 could signal the completion of the bounce from the March 31 low of $1,677.61.
A bearish target zone of $1,691-$1,716 will be established accordingly.
The pattern from the March 8 low of $1,676.10 looks like a double-bottom, which will suggest a target of $1,818 when confirmed. The confirmation will be when gold breaks $1,761.
On the daily chart, gold has broken a resistance at $1,724 and a falling trendline.
It is expected to rise towards $1,769. A drop from the current level will be regarded as a pullback towards $1,724.
A break below $1,724 will complicate the picture. It suggests a resumption of the downtrend or the extension of the consolidation from the March 8 low of $1,676.
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.
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