Spot gold may seek support around $1,708 before rising

October 5, 2022: Spot gold may seek a support around $1,708 per ounce, before retesting a resistance at $1,727, as suggested by its wave pattern.

The uptrend has been developing within a rising channel, which suggests a target around $1,708. The current correction seems to be driven by a wave 4, which will be reversed by the wave 5.

A break above $1,727 may lead to a gain to $1,735-$1,745 range, while a break below $1,708 could open the way towards $1,696-$1,701 range.

On the daily chart, gold failed to break a resistance at $1,733, It may retrace to $1,709, which is near $1,708 (hourly chart).

The metal may struggle in the range of $1,709 to $1,733 for one or two days before resuming its downtrend within a falling channel, as the rise from the Sept. 28 low of $1,613.60 may have been driven by a wave x, the eighth wave of a triple-zigzag.

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