SINGAPORE: Spot gold may retest a resistance at $1,970 per ounce, a break above could lead to a gain into the $1,977-$1,989 range.
The metal has surged above a wedge, which may turn out to be a bottom pattern. However, the surge on Thursday looks similarly odd to the steep fall on Wednesday.
It will be too optimistic to target the $1,977-$1,989 range if this oscillation extends on Friday.
Strategically, it will be much safer to wait for the metal to climb above $1,970.
A break below $1,958 could open the way towards the $1,938-$1,950 range.
Spot gold may fall into $1,919-$1,929 range
On the daily chart, gold unexpectedly climbed above a trendline.
The climb could be the final effort of bulls to maintain the metal above a support of $1,939.
It is not interpreted as a signal of the uptrend extension.
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