Technical Analysis: Spot gold may retest the $5,060 support; if it breaks below, look for $4,915

1. Spot gold may retest the support level at $5,060 per ounce. If this level is breached, it could trigger further declines, targeting the $4,915 to $4,998 range. The sharp drop from $5,419 indicates that the market is resuming the medium-term corrective trend that began at $5,596.2. Driven by wave C, the market may further dip into the broader $4,796–$4,915 range, which is defined by the 61.8% and 50% retracement levels of the rise from $4,410 to $5,421. The rebound from $4,998 has already ended in the $5,209–$5,259 resistance area, and the previous trading day's decline is seen as a resumption of the downtrend from $5,421.3. On the upside, resistance is at $5,210. If this level is broken, it could push prices up to the $5,259–$5,363 range. Once the market reaches this target area, the bearish outlook will be revised.4. On the daily chart, the narrow sideways consolidation between $5,011 and $5,201 is interpreted as a signal of cautious market sentiment. Considering that this flat consolidation occurred after a sharp drop from $5,419, the likelihood of a further decline outweighs the chance of a rebound.