Spot gold may retest support at US$1,911

[SINGAPORE] Spot gold may retest a support at US$1,911 per ounce, as suggested by its wave pattern and a projection analysis.

The metal is riding on a wave (c) from US$2,014.97. This wave was temporarily stopped by the support at US$1,911, its 50 per cent projection level.

However, this wave is expected to travel into a range of US$1,906-1,886. As a result, the bounce triggered by the support may be brief. Indeed, the bounce could have completed around a resistance at US$1,950, the 161.8 per cent projection level of a wave c from US$2,010.50.

A break above US$1,950 could lead to a gain into US$1,958-1,973 range. On the daily chart, the consolidation around the 2011 high of US$1,920.30 may extend into a zone of US$1,856-1,889, which is formed by the 286.4 per cent and the 300 per cent projection levels on the uptrend from US$1,159.96.

REUTERS