SINGAPORE: Spot gold may test a resistance at $1,830 per ounce, a break above which could lead to a gain to $1,847.

The metal is riding on a powerful wave (iii), which is capable of travelling to $1,876. A realistic target will be $1,847.

Gold has broken a lower resistance at $1,816. It is unlikely to fall below this level, as the wave (iii) has a fierce character and may not be disrupted by any decent correction.

A drop below $1,811 could prove the break above $1,816 to be false. A bearish target of $1,802 will be established accordingly.

On the daily chart, gold is rising towards a falling trendline, which suggests a target around $1,850.

The analysis on the hourly chart indicates a break above the trendline.

More than 61.8% of the drop from $1,875.26 has been reversed. Chance are this high may be revisited soon.

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