SINGAPORE: Spot gold may test a resistance at $1,759 per ounce, a break above which could lead to a gain into $1,769-$1,785 range.

The contract is riding on a wave c, which may either end around $1,759 or extend to $1,785.

The correction triggered by $1,759 seems shallow. It has almost been reversed.

The reversal signals a continuation of the wave c towards $1,785. Support is at $1,743, a break below which could confirm a completion of the wave c. A bearish target of $1,717 will be established accordingly.

Spot gold may test resistance at $1,759

On the daily chart, the current bounce is classified as a pullback towards a rising trendline. The pullback may end in the range of $1,765-$1,785, which is formed by the 38.2% projection level and a presumed resistance established by the trendline.

It must be noted that the downtrend from $1,916.40 has not completed. It is riding on a big wave C, which could travel to $1,520 in its full capacity. A break below $1,718 may confirm the continuation of this wave.

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