SINGAPORE: Spot gold may revisit its Wednesday low of $1,803.79 per ounce, as suggested by its wave pattern.

The fall from the June 15 high of $1,869.13 consists of five small waves. The current wave 4 is expected to end around $1,825, to be then reversed by a downward wave 5.

A retracement analysis on the uptrend from $1,677.61 suggests a target range of $1,769 to $1,797, as a result, the current bounce could be short-lived.

A break above $1,825 could lead to a gain limited to the resistance zone of $1,833 to $1,842. On the daily chart, the metal dropped below a falling trendline and pierced below a support at $1,818.

It is certain that the break above this trendlilne was false.

The deep fall on Wednesday signals a continuation of the downtrend from $1,676.10 or the formation of an inverted head-and-shoulders.

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