Spot gold may retest support at $4,141 after weak bounce

By Reuters News

SINGAPORE, Oct 1 (Reuters) - Spot gold may bounce moderately into a range of $4,178-$4,190 per ounce before retesting a support at $4,141.

A bounce from $4,112 appears to have completed, as confirmed by the deep fall from $4,219. The metal found a temporary support at $4,141, the 14.6% retracement of the downtrend from $4,316.

The support triggered a bounce, which is expected to be weak and brief. A break above $4,190 may lead to a gain to $4,214. On the daily chart, the metal has broken a pivotal support at $4,233, the 61.8% retracement of the uptrend from $3,943 to $4,696.

The break significantly increases market's chance of revisiting the low of $3,943. A break above $4,233, now a resistance, may lead to a gain into the $4,322-$4,411 range.


* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively 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.


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