SINGAPORE: Spot gold may edge up into a range of $1,795-$1,798 per ounce, driven by a wave e.
The recovery of the price from the Oct. 18 low of $1,759 turned out to be stronger than expected. Chances are the uptrend from $1,720.49 has extended.
The trend consists of five waves.
The wave e is unfolding towards the target zone. The zigzagging mode of the current rise suggests the formation of flat from the Oct. 14 high of $1,800.12.
Based on this suggestion, what appears to be a wave e may turn out to be a wave b, which will be reversed by a downward wave c.
A break below $1,776 could cause a fall into $1,757-$1,764 range. On the daily chart, gold is approaching a falling trendline again.
A break above the line will be much undermined by a resistance at $1,800. Only when the metal stands firm above this level, could a bullish target zone of $1,828-$1,862 be established.
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