SINGAPORE: Spot gold may break a support at $1,761 per ounce and fall towards $1,726, as suggested by a projection analysis.

The support is identified as the 76.4% projection level of a downward wave C from $1,875.26. This wave has an ultimate target of $1,726.

The bounce triggered by the support at $1,761 on Feb. 19 has been totally reversed. The reversal signals a continuation of the wave C.

Resistance is at $1,783, a break above which could lead to a gain to $1,801. On the daily chart, gold is retesting a support at $1,769, the 61.8% projection level of a downward wave C from $1,959.01.

This time, the metal may succeed and then drop towards $1,724. Eventually, the downtrend could extend to $1,651.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.