SINGAPORE: Spot gold may retest a resistance at $2,059 per ounce, a break above which could lead to a gain into $2,065-$2,074 range.
The metal seems to be riding on a wave 5, which may travel to $2,074.
This wave count has to be revised, once gold drops below a support at $2,039, as such a drop may extend into $2,024-$2,033 range.
A bearish view could be formed after the extended drop.
The main concern over the current wave count is that the wave 4 and the wave 2 are not of the same degree.
Spot gold may retest resistance at $2,059
One of the possibilities is that the drop from the May 3 high of $2,072.19 could be due to a reversal of the uptrend from the April 28 low of $1,975.60.
On the daily chart, the metal faces a strong resistance at $2,072.50.
The longer it stays below this level, the more likely a big triple-top is confirmed.
The pattern developed from the August 7 high of $2,072.
It suggests a deep drop towards the Nov. 3, 2022 low of $1,615.59.
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