SINGAPORE: Spot gold may break a support at $1,919 and fall into a range of $1,883 to $1,905 per ounce, as it has dropped below a rising wedge.
The drop confirms the wedge as a top pattern. It also signals a reversal of the uptrend from $1,771.89.
A rising trendline points at a target of $1,905. Resistance is at $1,933, a break above could lead to a gain into $1,942-$1,956 range.
On the daily chart, a bearish divergence appeared on the RSI, signalling an exhaustion of the uptrend.
Spot gold still targets $1,956-$1,969 range
The current drop is tentatively classified as a pullback towards $1,896.
A projection analysis reveals a similar target of $1,898.
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