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Spot gold may test a support at $1,887, as the bounce triggered by this support is ending around a resistance at $1,912 per ounce.
The support and the resistance are identified as the 23.6% and the 38.2% retracements of the downtrend from $2,014.97 to $1,847.57. The bounce looks like a pullback towards a rising trendline.
A break above $1,912 could lead to a gain to $1,931. On the daily chart, gold is stuck in a neutral range of $1,889-$1,924, formed by the 300% and the 314.6% projection levels of an uptrend from $1,159.96.
The bias could be towards the downside, as the downtrend from the Aug. 7 high of $2,072.50 may extend below the Sept. 24 low of $1,847.57, driven by a wave C.
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 as being 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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