SINGAPORE: Spot gold is expected to retrace into a range of $1,938-$1,947 per ounce, following its failure to break a resistance at $1,964.

The failure marked the completion of the bounce from the Tuesday low of $1,931.76, or the first part of this bounce. In either case, gold may retrace towards $1,931.

The downtrend from $2,047.99 remains intact, as gold failed to break a falling trendline.

A break above $1,964 may lead to a gain into the $1,975-$1,985 range.

On the daily chart, the bounce was triggered together by a rising trendline and a support of $1,939.

Spot gold may retest support at $1,938

The stabilization of the price around this level suggests two possibilities. One is a resumption of the uptrend towards $2,072.

The other is a temporary consolidation followed by a deep drop.

The favoured scenario is a drop, as the metal is expected to slide to the bottom of the wave D at $1,804.