SINGAPORE: Spot gold may retreat into a range of $1,830-$1,847 per ounce, as it failed to break a resistance at $1,875.

The rise over the past few days also looks too sharp to sustain. It is subject to a correction, especially when a wave (v) is ending around $1,875.

A break above $1,875 could lead to a gain to $1,893, while a break below $1,859 could confirm the target zone.

On the daily chart, the metal faces a similar resistance at $1,874, which may trigger a pullback towards the falling trendline.

It is still too early that bulls celebrate a break above the trendline, as the metal may consolidate around $1,874 for some time. Only when gold stands firm above $1,874 could the break above the trendline be confirmed.

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