Spot Gold Technical Analysis: Wave C May Push Prices Down to the $3987-$4008 Range

1. From a technical perspective, spot gold may continue to move downward, with the target range pointing to $3,987 to $4,008 per ounce. This trend is mainly driven by the momentum of wave C. 2. Gold prices are currently retesting the key support level at $4,038. This level corresponds to the 61.8% Fibonacci retracement of the rally from the low of $3,959 to the high of $4,165.92. Judging by the wave structure, wave C is advancing; if its movement is roughly equivalent to wave A, there is a possibility of a downside move to $3,959. 3. The resistance above is near the 50% retracement at $4,062. If gold prices can break through this level, it is expected to rebound further to the $4,087–$4,117 range. However, the overall consolidation pattern since the low of $3,943 on June 30 is forming a wedge, which is highly likely to develop into a bearish continuation structure. 4. Technical signals on the daily chart are somewhat contradictory, as gold prices are trapped within the narrow range of $3,965 to $4,172. However, the gradual formation of the wedge pattern suggests a short-term bias toward the downside. 5. Over the past few weeks, gold’s sideways consolidation has largely benefited from the strong support at $3,965. This position represents the 61.8% Fibonacci projection of wave C, which started at the high of $4,889.