SINGAPORE: Spot gold may end its bounce around a resistance at $1,832 per ounce and resume its drop towards $1,808 thereafter.
The roller coaster move over the past two trading sessions marked the completion of a rise from $1,786.60.
The rise consists of five corrective waves, which could be alternately labelled as impulsive waves.
These two wave counts suggest two opposite directions.
In the case of an impulsive wave mode, gold is expected to surge far above $1,877.
A corrective wave mode would mean a drop below $1,786.
Contrary to these confusing wave patterns, the fall from $1,877.05 obviously consists of five impulsive waves.
The wave iv is unfolding towards $1,832, which will be reversed by the wave v.
Spot gold may retest resistance at $1,876
A break above $1,832 may lead to a gain to $1,843.
On the daily chart, the big black candle on Monday is unlikely to be followed by a white one, as the pattern between June 10 and Monday may not repeat. Instead, gold could drop towards $1,801.
Another black candlestick may form.
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