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Spot gold may rise into a range of $1,853-$1,875 per ounce, as it has cleared a resistance at $1,840.
The substantial rise from the February 4 low of $1,784.76 strongly suggests completing a wave C around key support at $1,783, its 61.8% projection level.
Either the downtrend from the Jan. 6 high of $1,959.01 has further reversed, or the uptrend from the Nov. 30, 2020 low of $1,764.29 has extended.
A break below $1,827.93, however, will indicate a resumption of the downtrend towards $1,783. On the daily chart, gold could be consolidating within a big flat that developed from $1,764.29.
This pattern consists of three waves that are roughly equal in length. The current wave c could travel into a range of $1,934-$1,979.
(Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.)
No information in this analysis should be considered asbeing business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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