SINGAPORE: Spot gold may retreat moderately to $1,816 and then retest a resistance at $1,847 per ounce, a break above which could lead to a gain to $1,859.

The metal is riding on a powerful wave C, which is capable of travelling to $1,876. Five smaller waves make up this wave C. So far, three small waves have completed.

The fourth wave labelled (iv) is developing towards $1,816. It will be reversed by an upward wave (v). A break below $1,816 could open the way towards $1,802.

On the daily chart, the sideway move over the past two days is considered as a consolidation around a resistance at $1,828.

The consolidation could be due to a surge from the May 5 low of $1,769.20, which has run too fast to sustain.

The metal is still likely to rise towards a falling trendline, which establishes a resistance around $1,850.

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