SINGAPORE: Spot gold is expected to fall to $1,818, as it has broken a support at $1,840 per ounce.

The support is identified as the 23.6% projection level of a downward wave C from $1,874.86. This wave is capable of travelling to $1,783.

The next support will be at $1,818, a break below which could open the way towards $1,761. Resistance is at $1,853, a break above which could lead to a gain to $1,864.

On the daily chart, gold has cleared a support at $1,841, the 38.2% projection level of a downward wave C from $1,959, which is almost identical to $1,840 (hourly chart).

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