SINGAPORE: Spot gold is biased to drop into a range of $1,788-$1,797 per ounce, as the consolidation above a falling trendline lasts too long.

This longer-than-expected consolidation makes a break above the line doubtful. The rise from $1,778.80 was thought to be riding on a wave (3).

The current weak momentum shows little sign of such a fierce wave.

Spot gold may test resistance at $1,826

A rise above $1,89.72 may signal the continuation of the uptrend towards $1,826-$1,841 range.

On the daily chart, the metal looks neutral in a narrow range of $1,800 to $1,828, and an escape could suggest a direction.

A break below $1,800 could open the way towards $1,773, while a break above $1,828 could lead to a gain to $1,862.

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