SINGAPORE: Spot gold may drop more to $1,837 per ounce, following its failure to break a key resistance at $1,857. The failure suggests that the rise from $1,804.20 be a bounce against the fall from $1,8090.18.
Further suggestion comes from a break below a rising trendline.
Even if the bounce may unexpectedly extend above $1,857, the extension would not occur until the current correction completes in the range of $1,824-$1,837. A break above $1,857 could lead to a gain to $1,870.
Gold edges higher in choppy trade
On the daily chart, the metal faces a similar resistance at $1,858.
It may seek support around $1,833.
The tricky part is whether the bounce from the Feb. 28 low of $1,804.20 has completed. The only clear thing is that the metal has to retrace towards $1,813-$1,833 first.
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