SINGAPORE: Spot gold may fall to $1,816 per ounce, as it has completed a bounce triggered by the support at $1,830. The metal is riding on a wave c from $1,890.18, which may either end around $1,830 or extend to $1,793.
The second slide below $1,830 on Friday confirmed an extension of this wave towards $1,793. A close above $1,830 on Friday will not be treated as a bullish signal.
Only if gold breaks above $1,842 will a bullish view be formed. On the daily chart, a bearish flag suggests a target of $1,793, which is yet to be fulfilled.
A realistic target will be $1,813, as gold has broke a support of $1,833.
Spot gold may end bounce around $1,853 and fall
The depth of the fall from $1,956.60 confirms a reversal of the uptrend from $1,613.60. Three waves make up the trend.
The wave b ended at $1,727.50. Will this bottom be revisited.
The chance could be high as long as gold maintains its momentum.
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