SINGAPORE: Spot gold may test a resistance at $1,826 per ounce, a break above could lead to a gain at $1,841.
The metal has completed a pullback towards a falling trendline and managed to hover above a support at $1,808. It could have resumed its uptrend towards a range of $1,826 to $1,856, formed by the 38.2% and the 61.8% projection levels of an upward wave (3).
A break below $1,808 could cause a fall into $1,788-$1,797 range. On the daily chart, the metal seems to be stuck in a narrow range of $1,800 to $1,828.
Wave pattern suggests the development of a wave c from $1,684.37, which is the third wave of a big flat pattern from $1,677.61.
This wave is expected to travel close to $1,916. As a result, gold is biased to break $1,828 and rise towards $1,862. A break below $1,800 could open the way towards $1,773.