SINGAPORE: A bullish target range of $1,801-$1,811 per ounce has been temporarily aborted for spot gold. It will only be resumed when the metal breaks above $1,795.

The sharp correction from the Tuesday high of $1,795.25 suggests the completion of a wave c from $1,716.57. Even though gold manages to hover above a key support at $1,785, the target zone of $1,811-$1,827 looks doubtful.

As long as gold remains below $1,795, it is likely to drop towards $1,716.57, the bottom of the wave b. A break above $1,795 could confirm the extension of the wave c towards $1,811.

Spot gold may rise into $1,801-$1,811 range

On the daily chart, a small doji formed on Tuesday, around a strong resistance of $1,800.

This candlestick looks like a convincing bearish reversal pattern, gold may pull back towards $1,765 or at least fall to $1,773.

A break above $1,800 may not trigger an impressive gain, as the metal will face a resistance established by a falling trendline.

The current rise is still regarded as a part of a big wave C from $1,916.40, which is expected to travel into $1,520-$1,671 range.

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