SINGAPORE: Spot gold may break a support at $1,859 and fall into a range of $1,830-$1,847 per ounce, as it failed to break a key resistance at $1,875.

The rise over the past few days looks too sharp to sustain. It is subject to a correction. The failure to break $1,875 could be the very first signal that the correction has started.

A five-wave cycle from $1,788.81 may have completed around $1,875, increasing the chance of a drop. A break above $1,875 could lead to a gain to $1,893.

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

Over the next few days, the metal may consolidate around $1,874.

A break above $1,874, which looks unlikely by the end of this week, may open the way towards $1,921-$1,979 range.

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