SINGAPORE: Spot gold may test a support at $1,821 per ounce, a break below which could open the way towards $1,808.

The drop from $1,877.05 adopted a five-wave mode, while the rise from the June 14 low of $1,803.90 has adopted a corrective wave mode.

Such a structure increases the chance of the downtrend to extend far below $1,803.

Spot gold may end bounce around $1,832

The bounce from $1,803.90 is believed to have completed around a resistance at $1,843.

The downtrend could have resumed.

A break above $1,843 could lead to a gain to $1,856.

On the daily chart, the contract could be riding on a wave e, which is unfolding towards the lower channel line.

Even though a big white candlestick formed on Wednesday, which engulfs the preceding small black candle, the downtrend towards $1,720 remains intact.