SINGAPORE: Spot gold may seek a support at $1,797 per ounce, before rising again.

The rise from the Monday low of $1,786.60 consists of five small waves.

Such a structure suggests an extension of the gains above the Tuesday high of $1,835.99. The wave 2 ended around $1,797, which serves as an ultimate target of the current drop.

A further fall below $1,787 may confirm the continuation of the downtrend towards $1,763.

Spot gold may rise more into $1,840-$1,849 range

Resistance is at $1,813, a break above which may lead to a gain into $1,823-$1,840 range.

On the daily chart, a long-shadowed hammer forming on Monday has not been confirmed as a reversal pattern. Gold may retrace further into the lower shadow of the hammer.

The fall may end around $1,791. A further drop could be extended into $1,749-$1,775 range.