SINGAPORE: Spot gold may test a support at $1,831 per ounce, a break below which could be followed by a drop to $1,821.

The metal failed to break a resistance at $1,850.

The failure triggered a pullback towards $1,831.62, the Jan. 3 high, which works as a support, strengthened by $1,831, the 61.8% projection level of the wave c.

The correction is expected to be mild, doing little damage to the uptrend.

Spot gold may test resistance at $1,849

A break above $1,850 could confirm the continuation of the uptrend towards $1,860-$1,872 range.

On the daily chart, the uptrend remains firm.

It is extending towards $1,920, which is pointed by a rising channel.

A realistic target will be $1,863 or $1,877, both of which are to be confirmed by a break above $1,849.

Only a break below $1,831 could undermine the bullish outlook.

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