SINGAPORE: Spot gold may retest a resistance at $1,793 per ounce, a break above which could lead to a gain into $1,799-$1,810 range.
The strong recovery of the price from the Dec. 5 low of $1,764.70 suggests a continuation of the uptrend from $1,615.59.
To confirm this continuation, the metal has to stay above $1,774.
Until now, it has remained below a rising trendline. The rise over the past two days could be also regarded as an extended pullback towards this line.
A break below $1,774 may signal the completion of the pullback and an extension of the downtrend from $1,809.91, towards $1,755-$1,766 range.
Spot gold may fall into $1,748-$1,755 range
On the daily chart, the gain on Wednesday suggests the formation of a rising wedge, the upper trendline of which points to a target around $1,820.
The wedge looks like a top pattern, to be followed by a deep drop.
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