Spot gold TVC:GOLD may retest resistance at $4,120 per ounce, a break above which could lead a gain into the $4,141-$4,174 range.
The metal is presumed to be riding on a wave c, the third wave of an irregular flat from the June 25 low of $3,959. This wave is capable of travelling into the $4,141-$4,174 range.
The correction triggered by the resistance at $4,120 might have completed, following the market stabilized around the support at $4,032.
A break below $4,032 may trigger a drop toward the $3,999-$4,015 range. On the daily chart, the nature of the current bounce remains unclear.
A weak bounce might be either against the downtrend from $4,382, probably to end in the range of $4,141-$4,233, or against the much longer trend from $4,889, to extend toward $4,382.
Wave pattern suggests a reversal of the downtrend from $4,889, as the trend could be divided into five waves, with the fifth wave, the wave e, being roughly equal to the wave a.
* 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.