SINGAPORE: Spot gold may drop into a range of $1,736-$1,741 per ounce, as its bounce is expected to end around a resistance of $1,757.
Over the past few days, the mental has been be riding on a wave c, the third wave of an irregular flat from the Nov. 21 low of $1,731.40. This wave is expected to complete around its 161.8% projection level of $1,757.
Even if this wave count proves to be incorrect, the current rise could be limited to a resistance at $1,764, the 61.8% retracement, which is near the peak of a wave B.
A break above $1,764 could lead to a gain into $1,772-$1,786 range. On the daily chart, gold seems to be consolidating in the range of $1,721-1,788.
The consolidation is likely to be followed by a fall, as the pattern between July 2020 and July 2022 looks like a double-top.
The bounce from $1,613.60 is classified as a pullback towards the neckline of the pattern, only that the pullback has been a bit overdone.