SINGAPORE: Spot gold may rise to $1,805 per ounce, as it has more or less broken a resistance at $1,789.

A five-wave cycle from $1,876.90 has completed. The current bounce may extend to the peak of the wave iv around $1,819.

A retracement analysis reveals an immediate target of $1,805.

The bounce may be weak, limited to the resistance zone of $1,805-$1,819, as the downtrend from $1,876.90 could extend far below $1,761.

Spot gold may test $1,789; weak bounce incomplete

Support is at $1,778, a break below which could cause a fall into $1,761-$1,769 range. On the daily chart, a retracement analysis reveals a similar target of $1,803.

The downtrend from $1,876.90 remains intact, as both a wedge and the wave pattern suggest a further slide to $1,684.

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