SINGAPORE: Spot gold is expected to retest a support at $1,971 per ounce, probably to break it and fall into $1,951-$1,964 range. The metal has moved into a consolidation phase.

Three waves make up the consolidation. So far, only the first wave has completed.

The current wave b may end around $1,984 or extend a bit to $1,992, to be followed by a downward wave c which could travel to $1,964.

A break above $1,992 may lead to a gain to $2,005.

Spot gold to retest resistance at $1,992

On the daily chart, a pullback towards a falling trendline has been absent.

The strong resistance at $2,004 could have triggered this pullback, towards $1,939-$1,964 range.