Spot gold may test resistance at $1,820 per ounce, a breakout could lead to a gain of $1,829. The metal has more or less broken a resistance at $1,812. The breakout opens the way to the $1,820-$1,829 range. A downtrend line also suggests a target target of $1,820. A drop below $1,805 could confirm the completion of the bounce from $1,783.50 or its first round. Spot gold may retest support at $1,81. Consequently, a target of $1,794 will be set. On the daily chart, the long shadow hammer from Jul 1 symbolized strong support around the May 16 low of $1,786.60. It may take a few days for the metal to overcome this barrier and fall further. The hammer also suggests a possible bounce into a range of $1,830-$1,842.
The metal is riding a wave C that is expected to travel to the $1,784-$1,812 range. The downtrend appears to be steadily developing, which is unlikely to reverse. Dec 10 (Reuters) – Gold prices posted a fourth straight weekly decline on Friday as caution prevailed over U.S. inflation data that could prompt the Federal Reserve to cut its bond purchases at a faster pace. . Bullion prices are down around 0.7% so far this week as investors acted cautiously on the US consumer price index report.