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SINGAPORE, Aug 24 (Reuters) - Spot gold XAU= may extend gains into a range of $4,681 to $4,743 per ounce, as suggested by a projection analysis.
The contract has pierced above the key barrier at $4,643, the 261.8% projection level of the uptrend from $3,959. Given that the metal did not stop around $4,643, it is highly likely to climb to $4,842, based on the projection analysis.
Support is at $4,612, a break below which could trigger a fall into the range of $4,543-$4,581. On the daily chart, the market has overcome a key barrier at $4,529, the 61.8% retracement of the downtrend from $4,896 to $3,945.
A further gain to $4,889 would be highly likely. A more conservative target will be $4,761, which will be confirmed when the metal breaks $4,666.
* 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.
(Reporting by Wang Tao;)