SINGAPORE: Spot gold may rise to $1,770 per ounce, as it has broken a resistance at $1,756.

The metal is riding on a wave c which has travelled above its 76.4% projection level of $1,756. It is expected to extend to $1,770.

The upper channel suggests a much higher target of $1,806, which will be available when gold breaks $1,770.

The break, however, may not easily materialise, as it could succeed a correction. A break below $1,756 could be followed by a drop into $1,741-$1,747 range.

Spot gold may test resistance at $1,747

On the daily chart, gold has broken a resistance at $1,749. The break opened the way towards $1,775-$1,791 range.

The steep gains from the July 21 low of $1,680.25 suggests a reversal of the downtrend from the March 8 high of $2,069.89, which could be well broken down into five waves.