SINGAPORE: Spot gold may drop into a range of $1,766-$1,780 per ounce, following its failure to break a resistance at $1,825.
The failure, along with the subsequent drop, suggests a completion of a wave (c), which just narrowly missed its target of $1,833.
A break above $1,806 could lead to a gain into $1,816-$1,833 range.
On the daily chart, a rising wedge has contracted to a point.
It looks like a top pattern, to be followed by a deep drop.
Spot gold may retest resistance at $1,825
This pattern will be confirmed when gold drops below its Dec. 13 low of $1,778.60.
A bearish target of $1,721 will be established thereafter.
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