SINGAPORE: Spot gold may retest a resistance at $1,867 per ounce, a break above which could lead to a gain into $1,887-$1,892 range.

The metal has stabilised around a support at $1,845 per ounce, following its two failures to break this level.

The uptrend from $1,786.60 is expected to resume.

The trend is driven by a wave (3) or wave c, both of which are capable of travelling to $1,887.

Spot gold may fall towards $1,837

A break below $1,845 could cause a fall into $1,826-$1,837 range.

On the daily chart, the drop on Wednesday triggered by the resistance at $1,867 looks like a pullback towards the lower channel.

A duplicated channel suggests a target of $1,892.

The stabilization of the price around $1,837 confirmed a completion of the pullback.

The metal is poised to retest the resistance at $1,867.