SINGAPORE: Signals are a bit mixed for spot gold, as it is consolidating within a falling wedge.
Given that the wedge formed after an uptrend.
It may turn out to be a bullish continuation pattern. It will be confirmed when gold breaks a resistance at $1,815.
A break below $1,795 may signal the continuation of the downtrend. The wedge may be confirmed as a bearish pattern. The bias looks towards the upside.
On the daily chart, there has not been a convincing signal that the correction from July 15 is over. There is also no strong signal that the correction would extend. Such a sideways mode is likely to end with a strong move.
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