SINGAPORE: Spot gold may test a resistance at $1,879 per ounce, a break above which could lead to a gain to $1,892. The metal has broken a resistance at $1,867, the 38.2% retracement on the fall from $1,998.10.

It is expected to gain more to $1,892. However, the rise is controlled by a set of projection levels of an upward wave c from $1,828 as well.

Before reaching $1,892, gold has to clear an immediate resistance at $1,879. On the daily chart, a bullish flag has been confirmed, suggesting a target of $1,917.

Gold prices climb as US dollar slides

The big white candlestick on Thursday guarantees a further rise on Friday. Generally, there is a pullback towards this flag after it is confirmed.

However, the pullback may not occur this time as gold has broken a resistance at $1,867, which has turned into a strong support.