SINGAPORE: Spot gold is expected to retest a resistance at $1,802 per ounce, with a good chance of breaking above this level and rising to $1,816.

Following its failure to break this resistance on Tuesday, the metal may succeed this time. The failure could be partially due to the completion of a five-wave cycle from $1,755.81.

This wave mode suggests a very fierce rally is yet to come, as the rally will be driven by a powerful wave (iii). Support is at $1,784, a break below which may cause a fall to $1,773.

On the daily chart, a retracement analysis reveals a similar resistance at $1,799, the 61.8% level.

Bulls look determined to overcome this barrier and push gold towards $1,828, as they never gave up after a few failures.

Given that the correction triggered by the resistance was shallow, the market sentiment remains bullish. The following rise could be as long as the one from $1,676.

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