Spot gold TVC:GOLD may fall to $3,901 per ounce, as indicated by a projection analysis.
The metal narrowly missed $3,940, the 238.2% projection level of a downtrend from $4,330. This projection analysis suggests a target of $3,901.
The magnitude of the strong bounce from the support at $3,964 suggests a target of $3,830. Immediate resistance is at $3,978, a break above which could lead to a gain into the $4,002-$4,025 range.
On the daily chart, the downtrend appears to have resumed after a brief bounce between June 25 and June 26.
A projection analysis on the drop from $4,769 marks a target zone of $3,747-$3,839, while another analysis suggests a target of $3,775.
A more aggressive target zone is from $3,202-$3,321, as pointed by a falling channel.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.