Technical Analysis: Spot gold may further decline to $3901

1. According to projection analysis, spot gold may further decline to $3,901 per ounce. Previously, the gold price once approached $3,940 — this is the 238.2% projection level of the downtrend from $4,330 — and the lower target points to $3,901. The strong rebound from the $3,964 support level suggests that the further downward target may extend to $3,830.2. However, at present, gold prices have initially recovered $3,978. If this level can be maintained, gold prices are expected to rebound to the $4,002 to $4,025 range.3. The daily chart shows that after a brief rebound from June 25 to 26, the downtrend in gold seems to have resumed. A projection analysis of the decline from $4,769 indicates a target range of $3,747 to $3,839, while another analysis points to $3,775.4. According to the downtrend channel, a more aggressive bearish target points to the $3,202 to $3,321 range.