SINGAPORE: Spot gold may fall towards $1,927 per ounce, as it has more or less escaped from a wedge. With the metal having approached the lower trendline, the wedge looks more like a top pattern, suggesting a target around $1,900.
A projection analysis based on the presumed wave (4) and the wave (5) indicates a higher target of $1,927. Strategically, both of these targets will be confirmed when gold breaks $1,956.
Immediate resistance is at $1,965, a break above which could lead to a gain into $1,974-$1,985 range. On the daily chart, the consolidation within a range of $1,939-$2,004 looks incomplete.
Spot gold may test resistance at $1,992
Following its two failures to break $2,004, the metal failed to break the lower resistance at $1,984. Its weakness left it no choice but to seek support in $1,923-$1,939 range.
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