SINGAPORE: Spot gold may test a support at $1,783 per ounce, a break below which could cause a fall into $1,770-$1,776 range.
After the sharp surge on Wednesday, the metal seems to have lost its momentum around the resistances at $1,795 and $1,802 respectively.
The surge is classified as an extension of the bounce from $1,720.49. The zigzagging mode of the uptrend from $1,744.84 suggests a deep reversal of the rise.
A break above $1,803 could lead to a gain into $1,807-$1,814 range. On the daily chart, gold faces a resistance at $1,800, which is strengthened by a similar one established by the upper trendline of a wedge.
The metal is likely to fall towards $1,739-$1,773 range. A break above $1,800 will make the wedge invalid.
A bullish target range of $1,828-$1,862 will be established accordingly.
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