SINGAPORE: Spot gold is expected to test a resistance at $1,801 per ounce, a break above which could lead to a gain to $1,818.

The metal is riding on a wave C from $1,875.26, which is travelling towards $1,726, its 100% projection level. However, this wave shows early signs of a completion around a support at $1,761.

The target of $1,726 has to be aborted. It will only be resumed when gold breaks $1,761. In the meantime, the metal has climbed above $1,783. It is heading towards the range of $1,801-$1,818. A falling channel even indicates a higher target of $1,840.

On the daily chart, gold has found a support at $1,769. It is expected to bounce towards $1,805, which falls within the range of $1,801-$1,818 (hourly chart).

This $1,869 level is pivotal in deciding how far the wave C could travel. A break below it could confirm the extension of this wave towards $1,651.

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