SINGAPORE: Spot gold may test a resistance at $1,798 per ounce, a break above which could lead to a gain into $1,807-$1,814 range.

The metal has climbed above a falling channel, based on which, a duplicated channel suggests a target of $1,814. An immediate resistance at $1,798 temporarily stopped the fall and triggered a pullback towards the lower channel.

As long as gold holds above $1,788, it may rise towards the target zone.

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Even though the upside looks promising, it is still too early to conclude that the uptrend from $1,720.49 has resumed.

A break below $1,788 could cause a fall into $1,776-$1,783. On the daily chart, a wedge is contracting to a point.

It may be confirmed as a bearish continuation pattern or a bullish pattern soon.

A break above $1,800 could lead to a gain to $1,827 while a a drop to $1,773 again will signal a continuation of the downtrend from $1,833.80.

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