SINGAPORE: Spot gold may test a resistance at $1,803, as it has stabilised around a support at $1,792 per ounce.
The support is near the bottom of a wave b. The stabilisation around the support suggests a completion of the drop from $1,853.67.
The metal seems to be pulling back towards the upper channel.
A duplicated lower channel suggests a target of $1,753. A break above $1,803 would make the target of $1,753 invalid while a break below $1,777 could confirm this target.
On the daily chart, a retracement analysis on the uptrend from $1,684.37 reveals a support at $1,781 which is working together with the one at $1,777 on the hourly chart.
Gold is expected to hover above the support at $1,781, and test a resistance at $1,803.
A rising channel would remain intact as long as the support at $1,781 holds.
The uptrend may keep on developing within this channel.
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