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SINGAPORE: Spot gold may retest a resistance at $1,870 per ounce, a break above could lead to a gain into $1,876-$1,883 range.

The uptrend is well controlled by a set of projection levels on the rise from $1,744.84. As long as the metal hovers above a support at $1,845, the uptrend will be deemed intact.

A break below $1,845 could cause a fall to $1,826. Wave pattern suggests the progress of a wave C or wave 3, both of which are capable of travelling into a range of $1,886 to $1,908.

On the daily chart, the current rise is considered as a continuation of the uptrend from $1,677.61. The metal is riding on a wave (c), which is capable of extending to $1,916.40.

This wave has briefly travelled above a resistance at $1,862. It may extend first to $1,885.

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Spot gold may fall to $1,764; China-Taiwan war unlikely

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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