SINGAPORE: Spot gold may test a resistance at $1,803, as it has stabilised around a support at $1,792 per ounce.

The support is near the bottom of a wave b. The stabilisation around the support suggests a completion of the drop from $1,853.67.

The metal seems to be pulling back towards the upper channel.

A duplicated lower channel suggests a target of $1,753. A break above $1,803 would make the target of $1,753 invalid while a break below $1,777 could confirm this target.

Spot gold may rise to $1,860-$1,872 range

On the daily chart, a retracement analysis on the uptrend from $1,684.37 reveals a support at $1,781 which is working together with the one at $1,777 on the hourly chart.

Gold is expected to hover above the support at $1,781, and test a resistance at $1,803.

A rising channel would remain intact as long as the support at $1,781 holds.

The uptrend may keep on developing within this channel.

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