SINGAPORE: Spot gold is expected to retest a resistance at $1,867 per ounce, a break above could lead to a gain into $1,887-$1,892 range.

The metal failed a few times to break a support at $1,845, around which, a bottom could be forming.

Wave pattern suggests the progress of a wave (3) or wave c, both of which are capable of travelling to $1,887.

A break below $1,845 could cause a shallow fall to $1,837. On the daily chart, gold is consolidating within a narrow range of $1,837 to $1,867.

Spot gold may retest resistance at $1,867

The consolidation is regarded as a prelude to a strong rally.

A channel technique suggests an immediate target of $1,892, which will be available when gold breaks $1,867.