Spot gold looks shaky around $1,870; pullback likely

SINGAPORE: Spot gold looks shaky around a resistance at $1,870 per ounce, it may retrace towards $1,845.

For a few times, gold failed to overcome this barrier.

A decent correction could be due. The slow rise over the past two trading sessions have been shaped into a rising wedge, which looks like more a top pattern than a continuation pattern.

A break above the resistance could lead to a gain into $1,876 to $1,883 range. On the daily chart, the current rise is considered as a continuation of the uptrend from $1,677.61.

Spot gold to retest $1,870; uptrend firm

The trend is riding on a wave (c), which is capable of extending to $1,916.40.

However, gold seems to be struggling around a resistance at $1,862.

It may be preparing a pullback towards a falling trendline.

Without this pullback, the rise simply looks unhealthy.

The longer gold hovers around $1,862, the more likely it pulls back towards $1,828.

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