Spot gold may drop to $1,845

SINGAPORE: Spot gold may break a support at $1,862 per ounce and fall to $1,845, as a bounce from $1,764.46 may have completed.

The bounce consists of three waves.

The third wave labelled c is roughly 76.4% the length of the first wave labelled a, as revealed by a projection analysis.

This relation, along with the deep drop on Monday, suggests a completion of the bounce.

Resistance is at $1,875, a break above which could lead to a gain to $1,888.

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