SINGAPORE: Spot gold may retest a resistance at $1,876 per ounce, a break above which could lead to a gain into $1,888-$1,908 range.
The strong surge on June 10 confirmed the extension of the uptrend from $1,786.60. The trend is riding on a wave C which could either end around $1,876 or extend to $1,908.
The consolidation from the May 24 high of $1,869.49 seems to have prepared this wave with sufficient momentum to extend to $1,908.
The current correction could be shallow, probably limited to $1,856.
Spot gold may retest support at $1,837
This correction looks like a pullback towards $1,867 on the daily chart.
The big white candlestick on June 10 marked the completion of a consolidation in the range of $1,837-$1,867.
The metal is expected to test the next retracement of $1,892.
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