SINGAPORE: Spot gold may retest a resistance at $1,985 per ounce, following its abrupt swing from a low at $1,954.07 touched on Tuesday. The sudden rise suggests a completion of a wave 5, which turned out to be a failed fifth wave.
The failure created a golden chance for a double-bottom around $1,955. With the metal having climbed above a falling trendline, it may be moving into a smooth journey towards the $1,992-$2,003 range.
Immediate support is at $1,970, a break below which could trigger a drop into $1,957-$1,964. On the daily chart, the support at $1,963 proved stronger than expected.
Gold falls; silver prices inert
A target of $1,939 has to be temporarily put aside, as gold may keep bouncing towards $2,004. The target will be resumed only when the metal falls below the May 18 low of $1,951.73.
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