SINGAPORE: Spot gold may retest resistance at $1,813 per ounce, a break above which could lead to a gain to $1,826.
The consolidation from the Oct. 22 high of $1,813.64 took the shape of a triangle, which turned out to be a bullish continuation pattern, suggesting a target of $1,814.
This triangle could be structured into a more bullish pennant that developed at $1,759.
The latter suggests a higher target of $1,835.
Key support is at $1,795, a break below which could cause a fall into $1,783-$1,788 range. The bullish target of $1,814 will have to be aborted thereafter.
On the daily chart, the metal closed above $1,800 on Wednesday. As a result, the drop on Tuesday could be classified as a pullback towards a falling trendline.
A close above $1,800 will be a promising signal that the metal may gain more towards $1,828.
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