SINGAPORE: Spot gold may bounce to $1,797 per ounce, as it has stabilized around a support at $1,769. Amid the widespread bearish sentiment, technical signals suggest an optimistic outlook that the drop from $1,916.40 could be over.
In the next few days, the metal is expected to keep recovering from the Thursday low of $1,766.29. A break above $1,797 could open the way towards $1,825.
On the daily chart, a retracement analysis on the fall from $2,072.50 to $1,678.40 reveals a support at $1,771, which is close to $1,769 on the hourly chart.
These supports are working together to end the downtrend.
The pattern from Nov. 30, 2020 low of $1,764.29 looks like an inverted head-and-shoulders. The right shoulder is still developing. This is a bottom pattern. It has strong bullish indication.
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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