SINGAPORE: Spot gold is expected to test a support at $1,783 per ounce, a break below which could cause a fall to $1,761.

The metal is riding on a wave C from $1,875.26, which may either end around $1,783 or extend to $1,726. Given that the bounce triggered by $1,783 has been almost reversed, the wave C is unlikely to complete around this level.

Driven by a strong bearish momentum, gold is still unlikely to break $1,783 in its current attempt. Most likely, it will pause around this level and bounce moderately before finally overcoming this barrier.

Resistance is at $1,801, a break above which could lead to a gain to $1,818. On the daily chart, gold has cleared a support at $1,805. It may fall into the range of $1,724-$1,769.Eventually, the metal could fall to $1,651.

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