SINGAPORE: Spot gold may rise into a range of $1,856-$1,867 per ounce, driven by a wave (3) or wave c.

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 a zigzag pattern.

Both of them suggest a further rise to $1,856.

The 100% projection level of the wave (3) or wave c.

A retracement analysis on the fall from $1,998.10 reveals a break above the 23.6% level of $1,837.

Spot gold neutral in $1,805-$1,823 range

The break opened the way towards $1,867. A further drop from the current level may be limited to the support zone of $1,826-$1,832.

On the daily chart, the big white candlestick on Thursday confirmed the hammer forming on Monday.

Together, they suggest a reversal of the downtrend. A channel technique marks a target zone of $1,867-$1,892.