SINGAPORE: Spot gold may test a support at $1,831 per ounce, a break below which could be followed by a drop to $1,821.
The metal failed to break a resistance at $1,850.
The failure triggered a pullback towards $1,831.62, the Jan. 3 high, which works as a support, strengthened by $1,831, the 61.8% projection level of the wave c.
The correction is expected to be mild, doing little damage to the uptrend.
Spot gold may test resistance at $1,849
A break above $1,850 could confirm the continuation of the uptrend towards $1,860-$1,872 range.
On the daily chart, the uptrend remains firm.
It is extending towards $1,920, which is pointed by a rising channel.
A realistic target will be $1,863 or $1,877, both of which are to be confirmed by a break above $1,849.
Only a break below $1,831 could undermine the bullish outlook.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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