Technical analysis: Spot gold prices may return to their August 20 low of $3,311
On Thursday (August 21), spot gold prices fell slightly during the Asian session and are currently trading around $3,342.36 per ounce.
Reuters technical analysts pointed out that spot gold could return to its August 20 low of $3,311 an ounce, as its wave pattern suggested.
The rally on that date may have been driven by wave (d), the fourth wave of the downtrend since $3,408. This wave is expected to be reversed by the next wave (e), which appears to be just beginning.
Breaking through $3,355, further gains to the $3,375- $3,388 range are possible. On the daily chart, the bulls may be making a last-ditch attempt to maintain the market above the lower wedge trendline, which looks like a top pattern.
The key support level is at $3,302, a break below which would confirm a bearish wedge. A break above $3,380 would signal a continuation of the uptrend.
At 11:38 Beijing time, spot gold was trading at $3,342.62 per ounce.
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