SINGAPORE: Spot gold may retest a support at $1,780 per ounce, a break below which could open the way towards $1,756-$1,766 range.

The metal failed twice to break a resistance at $1,806, the 186.4% projection level of an uptrend from $1,738.30.

The failure suggests the formation of a flat pattern or a double-top.

Both of these patterns indicate a drop to $1,766.

Resistance is at $1,788, a break above which could lead to a gain into $1,797-$1,806 range.

Spot gold may test support at $1,780

On the daily chart, gold is about to leave a rising wedge, which looks like a top pattern.

An evening star forming between Dec. 1 and Dec. 5 still works as a bearish reversal signal.

Despite their persistence, bulls still failed to push the metal above the Dec. 5 high of $1,809.91.

After the drop on Monday, the consolidation around $1,788 seems to be ending.