SINGAPORE: Spot gold may break a resistance at $1,789 per ounce and rise towards the next resistance at $1,805 due to the completion of a five-wave cycle.

The cycle started from $1,876.90.

The metal is bouncing towards the peak of the wave iv around $1,817.

The bounce would be classified as a pullback towards the rising trendline if gold fails to break $1,789.

A retracement analysis on the cycle suggests a target range from $1,805 to $1,819. Support is at $1,778, a break below which could cause a fall into a zone of $1,761-$1,769.

On the daily chart, the 61.8% retracement of $1,758 proved to be a strong support. Gold may rise towards $1,803, as it has broken a resistance at $1,781.

Gold steadies after hitting 2-week low as dollar retreats

Both a wedge and the wave pattern suggest an intact downtrend from $1,876.90, which could eventually extend to $1,684.

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