SINGAPORE: Spot gold looks neutral in a range of $1,849-$1,869 per ounce, and an escape could suggest a direction.

The metal is riding on a wave C or wave 3, both of which are capable of travelling to $1,886 or $1,908, as they have extended above the 100% projection level of $1,851.

However, a retracement analysis suggests a completion of these waves, as the 23.6% level of $1,849 works precisely and effectively as a support.

A break below $1,849 could cause a fall into $1,817-$1,831 range while a break above $1,869 could lead to a gain to $1,886.

Spot gold may retest $1,849, pullback incomplete

On the daily chart, the bias seems towards the downside, as gold is struggling around a resistance at $1,862.

The drop on Nov. 16 looks too shallow to be a completed pullback towards a falling trendline.

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