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SINGAPORE, Sept 11 (Reuters) - Spot gold XAU= may revisit its Sept. 2 low of $4,282 per ounce, as a downtrend from $4,969 might have resumed.
The resumption was indicated by the deep drop from the Sept. 3 high of $4,511. The drop could have been driven by a wave C, the third wave of a three-wave cycle from $4,696.
This wave is capable of travelling far below the bottom of the wave A at $4,282. Resistance is at $4,342, a break above which may lead to a gain into the $4,380-$4,440 range.
On the daily chart, the market is retesting a support at $4,306, a break below which could open the way toward $4,168. It is not very clear that the metal bounces again around $4,306.
Such a bounce might be much weaker than the previous one from $4,282 if it occurs.
* 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.
(Reporting by Wang Tao; Editing by Sonia Cheema)