Spot gold may bounce moderately to a resistance at $1,575 per ounce before turning around and testing a support at $1,553.
The deep fall from the Wednesday high of $1,610.90 suggests a reversal of the uptrend from the $1,458.17. The pattern from Jan. 6 looks like a head-and-shoulders, the right shoulder of which is developing.
Most likely, this right shoulder would end around $1,575. Support is at $1,553, a break below which could cause a fall to $1,535.
On the daily chart, a shooting star formed on Wednesday. It suggests a further slide towards $1,524, the 138.2% projection level of an uptrend from $1,265.90
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.