SINGAPORE: Spot gold may fall into a range of $1,769 to $1,778 per ounce, following its second failure to break a resistance at $1,789.

The current wave c looks too weak to overcome the barrier at $1,789 and travel to $1,805. It may end around $1,789.

The purpose of the wave a and the wave c seems to be driving two pullback towards a rising trendline.

A rise above $1,793 could signal the extension of the wave c towards $1,805.

Spot gold may revisit $1,876.90; pullback surprisingly shallow

The upside could be rather limited, if gold manages to rise towards $1,805, as the drop from $1,876.90 adopted a five-wave mode, which suggests an extension of the downtrend below $1,761.

On the daily chart, signals are a bit mixed, as gold is consolidating around $1,781.

Even though it remains above this support, a bullish target at $1,803 has to be temporarily aborted due to the weakness of the market.

A drop below the Dec. 10 low of $1,768.70 could signal the continuation of the downtrend.

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