Gold & Silver

Spot gold may bounce to $1,575 before falling

Reuters Singapore Jan 9 | Updated on January 09, 2020 Published on January 09, 2020

Spot gold still targets $1,497/oz.   -  Bloomberg

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

Published on January 09, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.