SINGAPORE: Spot gold looks neutral in a range of $1,805-$1,823 per ounce, and an escape could suggest a direction.

A break below $1,805 may open the way towards $1,787-$1,797 range.

However, the bias looks towards the upside, as the rise from the Monday low of $1,786.60 consists of five small waves. Such a five-wave structure suggests the development of bigger five-wave cycle or at least a zigzag pattern.

Under both of these scenarios, gold is expected to rise above the Tuesday high of $1,835.99.

Spot gold may seek support at $1,797 before rising

A break above $1,823 may lead to a gain to $1,840. On the daily chart, gold only managed to retrace slightly into the lower shadow of the hammer forming on Monday.

The hammer itself works as a bullish reversal pattern. It still suggests a possible reversal of the downtrend from $1,998.10.