SINGAPORE: Spot gold may rise into a range of $1,797-$1,805 per ounce, driven by a wave c.
The bounce around a support at $1,757 looks exceptionally strong. It could be riding on a wave c, which is the third wave of an irregular flat.
This wave could be 1.618 times longer than the wave a, to arrive at $1,805. Strategically, this target will be confirmed when the metal breaks above a resistance at $1,785.
Support is at $1,773, a break below which could cause a fall into $1,753-$1,765 range. On the daily chart, the metal found a strong support at $1,758. It is expected to rise into $1,803-$1,831 range.
The downtrend is likely to resume upon the completion of the bounce, as the lower trendline of a wedge points to a target around $1,700.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.