SINGAPORE: Spot gold may retest a resistance at $2,032 per ounce, a break above which could lead to a gain to $2,045. The metal is assumed to be riding on a wave 5, which is supposed to travel above the peak of wave 3 around $2,032.
But this wave 5 may turn out to be a failed one as well if it keeps unfolding below $2,032.
A failed fifth wave will create a good chance for a double-top.
Key support is at $2,000, a break below which will be interpreted as the early sign of this top pattern.
On the daily chart, the metal failed again to break a resistance at $2,029.
The failure increases the chance of a correction towards $1,984.
Spot gold may test support at $1,963
Strategically, a break below $2,004 could confirm the target of $1,984.
As long as gold hovers above $2,004, it is highly likely to break $2,029 and climb into the range of $2,046-$2,069.
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