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

The bounce from the March 8 low of 1,676.10 looks incomplete. It consists of three waves.

The current wave c is expected to be roughly equal to the wave a, to travel towards $1,761, the 76.4% projection level of a downtrend from $1,875.26.

A falling trendline suggests the same target as well. A break below $1,716 could signal a resumption of the downtrend.

On the daily chart, gold has cleared a resistance at $1,724, it is expected to rise towards $1,769.

The rise is presumed to have been driven by a wave 4, which will be reversed by a downward wave 5.

The wave 4 may complete in a range of $1,760-$1,769, which is formed by a falling trendline resistance and the 61.8% projection level of a downtrend from $1,959.

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