SINGAPORE: Spot gold may retest a support at $1,776 per ounce, a break below could cause a fall towards $1,764.

The drop from the Oct. 22 high of $1,813.64 looks deep enough to confirm a reversal of the uptrend form $1,720.49, which could be well divided into five waves.

The current weak bounce triggered by the support at $1,776 is classified as a pullback towards a rising trendline. The pullback is expected to end around $1,788.

Spot gold may retest $1,783, hovers around resistance of $1,800

Only a rise above $1,795 could suggest an extension of the uptrend. On the daily chart, the break above both a falling trendline and a resistance at $1,800 proved false.

The metal is likely to drop to $1,739.

Strategically, the this target will be confirmed when gold breaks $1,773. A break above $1,800 could open the way towards $1,828-$1,862 range.

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