SINGAPORE: Spot gold may end its bounce around a resistance at $1,853 per ounce, and resume its drop thereafter. The bounce is classified as a part of a wave c from $1,890.18, which may either end around $1,830 or extend to $1,793.

Given that the wave a looks exceptionally strong and sharp, the wave c is highly likely to extend to $1,793.

This wave has been unfolding within a falling channel, the upper channel line of which suggests a limit of $1,853.

A break below $1,830 could confirm the continuation of the wave c towards $1,793. On the daily chart, a projection analysis reveals a set of levels that are still working well.

Spot gold may drop into $1,828-$1,844 range

The support at $1,833 joins hands with $1,830 (hourly chart) to temporarily stop the fall. The downtrend may eventually extend to $1,793, as suggested by a bearish flag.