SINGAPORE: Spot gold may test a resistance at $1,746 per ounce, a break above which could lead to a gain into $1,761-$1,783 range.

The metal has cleared a resistance at $1,716, the 107% projection level of a downtrend from $1,875.26. The next resistance will be at $1,746.

The higher the metal climbs, the more likely the downtrend from the Jan. 6 high of $1,959.01 reverses. The current readings of the trending signals are that the downtrend remains intact.

Most likely, the bounce would end in the range of $1,746-$1,761.On the daily chart, gold has cleared a resistance at $1,724, it is expected to rise towards $1,769.

The rise could be driven by a wave 4, which may end below $1,769, as suggested by a falling trendline.

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