SINGAPORE: Spot gold may break a resistance at $1,850 per ounce, and rise into $1,860-$1,872 range.

The resistance is identified as the 86.4% projection level of an upward wave c from $1,782.10. This wave could extend to $1,860 or $1,909.

The consolidation in the narrow range of $1,831-$1,842 looks like a bullish flag, a powerful continuation pattern to be followed by a round of strong rally.

A break above $1,831 could cause a fall into $1,812-$1,821 range. On the daily chart, the metal is consolidating within a neutral range of $1,831-$1,849.

Spot gold may retest resistance at $1,850

The uptrend remains steady, which is extending towards $1,920, as pointed by a rising channel.

A realistic target will be $1,863 or $1,877.

The big white candlestick on Monday indicates a continuation of the uptrend. Confirmation of the continuation will be when gold breaks above $1,849.

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