SINGAPORE: Spot gold may retest a support at $1,775 per ounce, with a good chance of breaking below this level and falling into a range of $1,759-$1,769.
The consolidation over the past few days suggests the formation of a top around a resistance at $1,795. Unless the metal unexpectedly breaks above this level on Friday, it is almost certain to fall into a range of $1,759-$1,769. A break above $1,795 could lead to a gain to $1,811. On the daily chart, the metal is riding on a wave C from $1,916.40, which narrowly missed its minimum target of $1,671.
In its full capacity, this wave could extend to $1,520. The bounce from $1,684.37 seems to be ending around $1,800, only that the drop is yet to gain momentum.
A break above $1,800 may lead to a gain limited to $1,828. Charts are not available in reports received in email box through "Alert". To get charts, use the news code to retrieve the original reports.
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