Spot gold TVC:GOLD may extend gains to $4,283 per ounce after breaking key resistance at $4,174.
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. After travelling above its 161.8% projection level at $4,174, this wave is likely to extend to the 238.2% level of $4,283.
A more realistic target zone is from $4,229 to $4,250. A break below $4,174, which has become a support, may trigger a fall into $4,141 to $4,158 range.
On the daily chart, the successive gains over the past two trading sessions suggest a reversal of the downtrend from $4,889.
Five waves make up the trend. The peak of wave d at $4,382 serves as a target.
* 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.