SINGAPORE: Spot gold may rise into a range of $1,956-$1,969 per ounce, driven by a wave C. This wave targets a zone of $1,963-$2,004.
A projection analysis on the uptrend from $1,738.30 reveals a set of fine-tuned resistances and supports. To fulfil the target range, gold has to overcome the immediate resistance at $1,942.
Key support is at $1,919, which is suggested by both the projection analysis and a short rising trendline.
A break below $1,919 could be followed by a drop into $1,897-$1,905 range.
On the daily chart, the metal has cleared a key barrier at $1,896, the 61.8% retracement of the downtrend from the high of $2,069.89.
It is heading towards $1,962. A projection analysis on the current wave c from $1,727.50 reveals a similar target of $1,963.
To confirm the reversal of the uptrend, the support at $1,898 has to be broken.