SINGAPORE: Spot gold may fall into a range of $1,769 to $1,778 per ounce, following its second failure to break a resistance at $1,789.
The current wave c looks too weak to overcome the barrier at $1,789 and travel to $1,805. It may end around $1,789.
The purpose of the wave a and the wave c seems to be driving two pullback towards a rising trendline.
A rise above $1,793 could signal the extension of the wave c towards $1,805.
Spot gold may revisit $1,876.90; pullback surprisingly shallow
The upside could be rather limited, if gold manages to rise towards $1,805, as the drop from $1,876.90 adopted a five-wave mode, which suggests an extension of the downtrend below $1,761.
On the daily chart, signals are a bit mixed, as gold is consolidating around $1,781.
Even though it remains above this support, a bullish target at $1,803 has to be temporarily aborted due to the weakness of the market.
A drop below the Dec. 10 low of $1,768.70 could signal the continuation of the downtrend.
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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