SINGAPORE: Spot gold may revisit its Nov. 16 high of $1,876.90 per ounce, as it could have resumed its uptrend.
The resumption was signalled by the strong rise on Wednesday, which could have been driven by an extended wave v. A projection analysis on a bigger wave C from $1,757.63 suggests a target zone of $1,887-$1,908.
Key support to watch is at $1,859, a break below which could confirm an extension of the correction from $1,876.90 towards $1,849.
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On the daily chart, gold climbed above a resistance at $1,862 again. The pullback towards a falling trendline may be over. It appears to be much shallower than expected.
The metal may test the next resistance at $1,885, a break above which could lead to a gain to $1,916.
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