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Markets

Spot gold may fall to $1,859

  • Signals will turn neutral if the metal breaks an immediate resistance at $1,884. Only a further gain above $1,893 could confirm the continuation of the uptrend towards $1,921.
Published May 25, 2021

SINGAPORE: Spot gold may fall to $1,859 per ounce, as it has left a triangle.

The pattern proved to be bearish, suggesting a target around $1,859.

It developed at the end of a five-wave cycle and is thus regarded as a top pattern.

Signals will turn neutral if the metal breaks an immediate resistance at $1,884. Only a further gain above $1,893 could confirm the continuation of the uptrend towards $1,921.

On the daily chart, the metal looks very unstable around a resistance at $1,874. Even though it has closed above this level for a few days, the break simply can't be confirmed.

The metal may either consolidate further around $1,874 or pull back again towards a falling trendline.

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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