SINGAPORE: Spot gold may retest a support at $1,837 per ounce, a break could open the way towards $1,814-$1,830 range.
The metal is riding on a wave c, which is expected to travel to $1,830, its 100% level.
Besides a set of projection levels, this wave observes retracements on the fall from $1,998.10 as well.
The support at $1,837, the 23.6% level, temporarily stopped this wave.
However, due to incomplete wave c, the metal may eventually break this support and fall towards $1,830.
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Once gold drops to $1,830, it is likely to extend its loss towards $1,820, as suggested by the retracement analysis. Resistance is at $1,847, a break above which could lead to a gain to $1,858.
On the daily chart, gold failed twice to break a resistance at $1,867.
The failures suggest a completion of the bounce from $1,786.60.
Either the bounce would be further reversed or the downtrend from $1,998.10 would resume.
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