SINGAPORE: Spot gold may rise to $1,876 per ounce, as it has broken a resistance at $1,847.

The break signals a continuation on the uptrend towards $1,876, the 100% projection level of an upward wave C. Based on the depth of the correction triggered by the resistance at $1,847, gold may rise to $1,875 as well.

A fall to $1,843 could prove that the break above $1,847 was false.

The fall may be extended to $1,830. On the daily chart, the metal is poised to test a falling trendline.

The break above the line will not be confirmed until gold stands firm above $1,874. The current speculation is it may rise to $1,874 first and then pull back towards the trendline.

A break above $1,874 could open the way towards $1,921-$1,979 range, while a break below $1,828 could cause a fall to $1,770.

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