SINGAPORE: Spot gold may break a resistance at $1,821 per ounce and bounce more towards $1,832.

A five-wave cycle from $1,877.05 has completed. Gold has moved into a consolidation phase.

The wave iv peaked around $1,832, which works a bounce target over the next few days.

A break below $1,808 could confirm the extension of the wave v towards $1,786.60.

Spot gold may end bounce around $1,832

A retracement analysis on the daily chart reveals a higher bounce target of $1,837, the 23.6% level.

The deep falls over the past two days have confirmed a continuation of the downtrend within a falling channel, which suggests a target of $1,700.

The trend is expected to resume upon the completion of the current weak bounce.