SINGAPORE: Spot gold may retest a resistance at $1,946 per ounce, a break above which could lead to a gain into $1,956-$1,972 range.

The resistance is identified as the 114.6% projection level of an upward wave c from $1,819.35. This wave is highly likely to extend to $1,972, as it has cleared a key resistance at $1,930.

A break below $1,930, now a support, may cause a fall to $1,915. On the daily chart, gold has broken a falling trendline and a resistance at $1,938. It is expected to rise to $1,965, the peak of a wave B.

This $1,965 level is pivotal in evaluating the following direction. A break above it could signal the extension of the uptrend towards $2,072.50, while a failure could be followed by a deep drop towards $1,889.

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