Spot Gold Technical Analysis: $4,255 Support Level Faces a Test

1. Technically, spot gold may retest the support level of $4,255 per ounce. If this level is effectively breached, it could trigger a further decline towards $4,197. 2. The C wave starting from $4,512 may end near its 61.8% projection at $4,255, or it could extend to the 100% projection at $4,099. Since the previous A wave had a five-wave structure and the B wave rebound was less than 61.8% of the A wave, there is a possibility that the current C wave could extend to $4,099. 3. The current challenge lies in how and when the gold price will break below $4,255, as it is currently undergoing a rebound with unclear strength. The descending channel points to a target of $4,355; if the rebound is weak, it could end near $4,317. From a strategic perspective, if the gold price falls below $4,282, it would indicate the end of the rebound; if it breaks above $4,317, it may further test $4,355. 4. On the daily chart, gold has once again briefly fallen below the $4,306 support level. If it fails to recover and hold above this level, there is a higher probability of a subsequent decline towards $4,168.