SINGAPORE: Spot gold is biased to fall into a range of $1,878 to $1,898 per ounce, following its two failures to break a resistance at $1,940.
The metal is presumably riding on a wave c from $1,965.40.
This wave may travel into a wide range of $1,790 to $1,857, formed by its 100% and 61.8% projection levels.
The failures to break $1,940 signal a completion of the bounce from the March 29 low of $1,889.45. The wave c may have resumed.
A break above $1,940 could lead to a gain to $1,965. On the daily chart, gold is consolidating in a bigger neutral range of $1,890 to $1,959.
Spot gold neutral in $1,915-$1,940 range
The consolidation may turn out to be either a bottom pattern or a continuation pattern. Only an escape from the range could suggest the following direction.
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