SINGAPORE: Spot gold is expected to retest a resistance at $1,992 per ounce, a break above could lead to a gain to $2,005.
The strong surge on March 17 confirmed an extension of the wave 5, which is unfolding towards $2,005, as suggested by a projection analysis on the wave c from $1,809.27.
Another calculation points at a much higher target of $2,055, based on the lengths of the wave 1 and the wave 3. It is observed that when the wave five extends, it could be much longer than the wave 3.
Support is fixed at $1,964, a break below which may be followed by a correction to $1,951.
On the daily chart, gold has broken a falling trendline.
The metal is likely to revisit the March 8, 2022 high of $2,069.89.
Spot gold may drop into $1,884-$1,897 range
A projection analysis on the uptrend from $1,727.50 marks a key resistance at $2,004, which is almost coinciding with $2,005 on the hourly chart.
These resistances are expected to work together to trigger a pullback towards the trendline over the next one or two days.
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