SINGAPORE: Spot gold faces a resistance at $1,805 per ounce, it may hover below this level for one day or retrace into $1,785-$1,793 range.
The resistance is identified as the 161.8% projection level of a wave c from $1,753.30, the third wave of an irregular flat from the Dec. 2 low of $1,761.19. It is supposed to end around $1,805.
A rising trendline also establishes a resistance at $1,805, making a drop more likely. A break above this level may lead to a gain to $1,817.
On the daily chart, a retracement analysis reveals a similar resistance at $1,803, which is working together with the other two barriers on the hourly chart to stop a further rise.
From a longer perspective, gold is consolidating within a bearish wedge, which suggests a target of $1,700. There is no confirmation on the completion of the bounce yet. The bold speculation is it may end around $1,803.
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