The support is identified as the 200 per cent projection level on an uptrend from $1,265.90.
SINGAPORE: Spot gold may retest a support at $1,639 per ounce, a break below which could cause a fall to $1,614.
The support is identified as the 200 per cent projection level on an uptrend from $1,265.90. A shooting star forming around the resistance at $1,684 indicates a reversal of the uptrend from the Feb. 12 low of $1,561.16.
Resistance is at $1,667, a break above which could lead to a gain to $1,684. A closer examination on the hourly chart reveals a five-wave mode on the fall from the Monday high of $1,688.66.
This wave mode indicates the development of either a zigzag or a medium-term downtrend. Regardless of the exact pattern, the metal may revisit the low of $1,642.89. Most likely, the moderate bounce from this low would extend a bit to $1,669 before being reversed by a fall.