Spot gold may retest support at $1,659

October 3, 2022: Spot gold may retest a support at $1,659 per ounce, a break below which could open the way towards $1,647-$1,652 range.

The metal failed twice to break a key resistance at $1,671, the 61.8% projection level of a wave c from $1,640.30.

Chances are this wave may have ended.

Over the next few days, gold may fall towards $1,640.30, the bottom of the wave b.

A break above $1,671 may lead to a gain into $1,678-$1,689 range. On the daily chart, gold failed to rise to a resistance at $1,686.

The failure, along with a tombstone candle on Sept. 30, suggests a consolidation around $1,657.

The bounce from the Sept. 28 low of $1,613.60 may extend, upon the completion of the consolidation, as the support at $1,611 is expected to hold the fall for some time.

Reuters