SINGAPORE: Spot gold is expected to break a support at $1,761 per ounce and fall to $1,726, as suggested by its wave pattern and a projection analysis.

The metal is riding on a wave C from $1,875.26, which is travelling towards $1,726, its 100% projection level. Gold has briefly pierced below $1,761. A drop to $1,759 could confirm a break below this key support and a target of $1,726.

Resistance is at $1,783, a break above could lead to a gain to $1,801. On the daily chart, gold has pierced below a support at $1,769, after moving sideways around this level for one day.

A downward wave C may either end around $1,769 or extend to $1,651. It seems that bulls are gradually losing the battlefield around $1,769. This wave is highly likely to extend to $1,651.

A sudden surge above $1,783 could signal a reversal of the downtrend.

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