Spot gold may retreat towards a support at $1,833, as it faces a resistance at $1,861per ounce.
The resistance is identified as the 114.6% projection level of a wave c from $1,927.45. It is strengthened by another one at$1,862, the 50% retracement of the uptrend from $1,764.29 to$1,959.01.
The fall from $1,959.01 is so deep that it is classified as a continuation of the preceding downtrend from the Aug. 7, 2020high of $2,072.50.
A break above $1,861 could lead to a gain to $1,869. On thed aily chart, the bounce from $1,764.29 only managed to reverse61.8% of the fall from $2,072.50.
This relation suggests a possible extension of the downtrendfrom $2,072.50. Eventually, the metal could fall below$1,764.29.
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 shouldconsult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analysis.