SINGAPORE: Spot gold may test a support at $1,773 per ounce, a break below which could cause a fall to $1,739.

The metal failed to break a resistance at $1,800 and a falling trendline.

The failure not only triggered a drop towards $1,773 but also has a more bearish indication that the rise from $1,684.37 could have reversed.

Spot gold may retreat to $1,773

The rise could be a part of a big wave C from $1,916, which may extend into a range of $1,520-$1,671. However, the drops over the past two days look too shallow to confirm a resumption of the wave C.

A break above $1,800 may lead to a gain to $1,828. A detailed study on the hourly chart reveals a completion of a five-wave cycle.

Due to this completion, gold could be falling towards the bottom of the wave (4) around $1,775, close to $1,773 on the daily chart.

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