Spot gold technicals: Wedge pattern is bearish, watch the $4073 support level

1. Technical analysis shows that spot gold may retreat to the October 14 low near $4,073/oz, as suggested by the wedge pattern. The trend line in this pattern points towards this price, and the wedge may ultimately develop into a bottom or become a bearish continuation pattern, depending on which trend line is breached.2. The current movement indicates that gold prices are likely to break below $4,073. Resistance above is at $4,135, and a breakout could push prices into the $4,150 to $4,170 range.3. On the daily chart, gold prices incline toward breaking below the $4,096 support and moving down into the $4,036 to $4,066 range, as the rebound triggered by this support level (100% projection) appears very weak.4. The rebound forms a small wedge, and considering that wave (c) from $4,512 may reach $3,936, this looks like a bearish continuation pattern.