Spot gold TVC:GOLD may drop to $4,103 per ounce, as it has broken a support at $4,141.
Three waves make up the fall from $4,202. The current wave c is expected to travel to $4,103, the 38.2% retracement of the uptrend from $3,943 to $4,202.
Immediate resistance is at $4,141, a break above which may lead to a gain to $4,164. Only a further rise could confirm the continuation of the uptrend.
On the daily chart, the bounce lost its momentum before reaching to a resistance at $4,229, the 100% projection level of a downtrend from $5,418.
The small spinning top during the previous trading session symbolized the exhaustion of the bounce. Either the first round of the bounce is over or the downtrend from $4,889 has resumed.
* 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.