SINGAPORE: Spot gold may retest a support at $1,775 per ounce, with a good chance of breaking below this level and falling into a range of $1,759-$1,769.

The consolidation over the past few days suggests the formation of a top around a resistance at $1,795. Unless the metal unexpectedly breaks above this level on Friday, it is almost certain to fall into a range of $1,759-$1,769.

A break above $1,795 could lead to a gain to $1,811. On the daily chart, the metal is riding on a wave C from $1,916.40, which narrowly missed its minimum target of $1,671.

Spot gold may fall into $1,759-$1,769 range

In its full capacity, this wave could extend to $1,520. The bounce from $1,684.37 seems to be ending around $1,800, only that the drop is yet to gain momentum.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.