Spot gold may rise towards $1,831; medium-term outlook bearish

SINGAPORE: Spot gold may break a resistance at $1,817 per ounce and rise to $1,831, as it has found a strong support at $1,803.

The support is identified as the 61.8% retracement of the uptrend from $1,757.63 to $1,876.90. Both the former supports at $1,831 and $1,817 failed to hold, creating a golden chance of a decent bounce around $1,803.

Gold may take more than one day to reach $1,831.

It is likely to fail breaking $1,817 in its first attempt. A break below $1,803 on Tuesday, which is less expected, could cause a fall to $1,786.

On the daily chart, the deep drop on Monday strongly suggests a reversal of the uptrend from $1,684.37, which has been driven by a wave (c).

Gold steadies after hitting 2-week low as dollar retreats

As a part of a bigger wave B, this wave (c) may be reversed by a wave C.

The support at $1,800 may hold for a while, as it is working together with the one at $1,803 on the hourly chart.

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