The correction from the Aug. 16 high of $1,534.31 consists of three waves. The third wave labelled c is unfolding towards a support at $1,483, the 38.2% retracement of the uptrend from $1,400.31 to $1,534.31.

Resistance is at $1,515, a break above which may lead to a gain to $1,525. Only a further gain could signal the continuation of the uptrend.

On the daily chart, gold failed twice to break a resistance at $1,524, the 138.2% projection level of an upward wave (c) from $1,265.90. The bearish divergence on the daily RSI suggests a slim chance of a break above this resistance.

Most likely, the metal would fall into a range of $1,466-$1,480, which is lower than the range of $1,483-$1,503 (hourly chart). A break above $1,524 could lead to a gain to $1,546.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.