SINGAPORE: Spot gold may retest a resistance at $1,948 per ounce, a break above which could lead to a gain into $1,960-$1,979.
The bounce from the Wednesday low of $1,894.70 may have only completed its first wave. A total of three waves will form this bounce.
The current wave b is expected to end in the range of $1,922-$1,929. It will be reversed by the wave c. A break above $1,941 could lead to a gain into $1,948-$1,960 range.
On the daily chart, there was a false break below a support at $1,918, which triggered a bounce that might extend to $1,976.
The bounce won’t be able to reverse the downtrend which is presumed to be riding on a wave C, the third wave of a three-wave cycle from $2,072.50.
Eventually, the trend may resume towards a range of $1,673-$1,825.
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