SINGAPORE: Spot gold may test a resistance at $1,789 per ounce, a break above which could lead to a gain to $1,805.

A five-wave cycle from $1,876.90 has completed. It is expected to be further reversed.

The peak of the wave iv around $1,819 works as a target.

Following the failure of the metal to break $1,789 in its first attempt, the rise looks like a pullback towards a rising trendline as well.

There is a no early confirmation on this reading yet.

Gold eases as risk appetite improves and dollar firms

A break below $1,769 may signal a continuation of the downtrend. On the daily chart, gold has briefly pierced above a resistance at $1,781, it has a better chance of rising towards $1,803.

However, the upside could be rather limited, as 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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