SINGAPORE: Spot gold may retrace into a range of $1,939 to $1,947 per ounce, as it failed to break a resistance at $1,970. The rise from the June 15 low of $1,924.99 is tentatively classified as a bounce against the fall from $1,983.29.

The failure to break $1,970 is expected to be followed by a deep correction or a resumption of the downtrend from $1,983.

A break above $1,970 may lead to a gain to $1,983-$1,999 range.

On the daily chart, what appeared to be a bounce on the hourly chart looks like a pullback towards a rising trendline.

The pullback may have ended around $1,964.

The downtrend is supposed to continue towards $1,898.

Spot gold may retest support at $1,938

A break above $1,964 could make the break below the trendline invalid.

Only a rise above $1,984 could suggest a continuation of the uptrend towards $2,072.

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