Gold in Asia

SINGAPORE: Spot gold may test a resistance at $1,811 per ounce, a break above which could lead to a gain into $1,827-$1,837 range. The uptrend from the Aug. 9 low of $1,684.37 has extended. It consists of five waves. The wave (5) is unfolding towards $1,811.

A falling trendline establishes a resistance around $1,811. A failure to break this line would not only cause a fall towards $1,785-$1,795 range, but also signal a continuation of the downtrend from the June 1 high of $1,916.40.

Signals on the daily chart support a break above the trendline, as gold has climbed above a resistance at $1,800, which is a also a psychological level. Chances are the metal may rise more to $1,828.