Wednesday, 26 August 2015 10:55
,131″ alt=”Spot gold to test support at ,131″ width=”400″ height=”333″ src=”https://globalrubbermarkets.com/wp-content/uploads/2021/09/gold-slips-on-firm-dollar-eyes-on-ecb-us-data.jpg”>SINGAPORE: Spot gold may test a support at $ 1,131 per ounce, with a good chance of breaking below this level and falling more towards the next support at $ 1,110.
The bounce from the July 24 low of $ 1,077 has ended around a resistance at $ 1,165, the 38.2 percent retracement on the fall from the Jan. 22 high of $ 1,306.20 to $ 1,077.
The metal not only failed to break the resistance, but also failed to break a trendline falling from $ 1,306.20. These failures suggest a steady downtrend which may have resumed.
A drop to $ 1,128 may confirm a break below $ 1,131, and the 14.6 percent level at $ 1,110 will be approached then.
