SINGAPORE: Spot gold may test a resistance at $1,869 per ounce, a break above which could lead to a gain to $1,883. Based on a projection analysis, the metal has briefly pierced above the 338.2% projection level.

Chances are it may extend gains to $1,869. Whether there will be a further gain will be subject to the following development of the chart, as the 361.8% level is expected to establish strong resistance.

Immediate support is at $1,847, a break below which could be followed by a drop into $1,825-$1,838 range.

Spot gold may retrace towards $1,825

On the daily chart, another projection analysis suggests a higher target zone of $1,891-$1,919.

A retracement analysis on the fall from $2,069.89 to $1,613.60 reveals a similar target of $1,896, as gold has broken the 50% retracement of $1,842.