SINGAPORE: Spot gold may break a support at $1,938 per ounce, and fall into a range of $1,919-$1,929. The break will probably occur after a moderate bounce to $1,957, as the metal seems to be consolidating within a wedge.

Until the upper trendline or the lower trendline of the pattern is broken, it will be hard to confirm a strong bounce or a deep drop.

However, the bias looks towards the downside, as the wedge appeared after a downtrend.

It is highly likely to become a bearish continuation pattern.

On the daily chart, the consolidation above a trendline is over, as the line has been broken.

Spot gold may retest support at $1,938

The break marked a major achievement of bears, as it confirmed a reversal of the uptrend from $1,613.60. Five waves make up the trend.

The wave D ended around $1,800, which became a target.

A rise above $1,963 could signal the break below the trendline was false.