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

The current bounce may consist of three waves. So far, only two have unfolded. The wave c is yet to travel towards $1,805. The wave a failed to extend above a rising trendline even with its utmost effort.

Such a weakness bears an ominous sign of the following wave c which could be similarly incapable of fulfilling its target of $1,805.

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Support is at $1,769, a break below which could cause a fall to $1,761. On the daily chart, the metal is consolidating around a resistance at $1,781.

The consolidation could only finish when gold breaks $1,758. Both a wedge and the wave pattern suggest a possible break.

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