SINGAPORE: Spot gold may fall into a range of $1,987 to $1,994 per ounce, as it failed to break a resistance at $2,032.

The resistance is identified as the 186.4% projection level, which is generally not a strong barrier. However, a small five-wave cycle happened to end around this level, leaving gold no choice but to pull back towards a pennant.

The metal has broken a support at $2,011.

The break reveals the its intention to fall towards the bottom of the wave ii around $1,980.

Resistance is at $2,021, a break above which could lead to a gain into $2,032-$2,045 range. On the daily chart, the upper trendline of a triangle points at a target of $1,984.

Spot gold may gain more into $2,038-$2,045 range

The following drop is classified as a pullback towards the pattern, which forms a part of a more bullish pennant.

A break below $1,984 would make these patterns invalid.