SINGAPORE: Spot gold may test a support at $1,969 per ounce, a break below which could open the way towards the $1,948-$1,960 range.

The pattern looks like a bearish continuation pattern, to be followed by a round of drops. The drop will be driven by a wave c, which is expected to travel to $1,930, its 100% projection level.

Resistance is at $2,000, a break above which could lead to a gain into the $2,009-$2,018 range.

The wedge will become a bullish pattern if gold climbs above $2,009.

A target of $2,049 will be established accordingly.

Spot gold may test support at $1,981

On the daily chart, the sideways move within a narrow range of $1,963-$2,004 could be a preparation for a deep drop.

The uptrend from the Feb. 28 low of $1,804.20 looks too linear to sustain. It is prone to a decent correction.