SINGAPORE: Spot gold may test a support at $1,840 per ounce, a break below could open the way towards $1,823-$1,830 range.
The metal is riding on a wave C, which consists of three smaller waves.
The third wave, the wave c, is expected to extend to $1,840, as it has travelled far below its 61.8% projection level of $1,867.
A projection analysis on the wave C indicates an extension of the small wave c towards $1,797.
Spot gold may retest support at $1,867
A break above $1,867 may lead to a gain into $1,875-$1,883 range.
On the daily chart, both a projection analysis and a rising trendline suggest a target of $1,818.
Strategically, the target will be confirmed when gold breaks $1,842.
Either the uptrend from $1,684.37 would resume or a strong bounce would occur when the metal falls into the support zone of $1,818 to $1,832.
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