SINGAPORE: Spot gold may gain more into a range of $2,038 to $2,045 per ounce, driven by a powerful wave 3. This wave started at $1,949.55 and has briefly travelled above its 161.8% projection level of $2,021.

It is likely to extend into $2,055-$2,066 range, based on its strong momentum.

The strong gain on Tuesday confirmed a bullish pennant from $1,809.27.

The pattern indicates a much higher target of $2,150.

Support is at $2,011, a break below could be followed by a correction to $2,000.

Spot gold may retest resistance at $1,994 after correction

The correction will be classified as a pullback towards the pennant, unless it could extend below $1,983.

On the daily chart, gold has broken a key resistance at $2,004.

The break opened the way towards $2,134-$2,175 range.

A realistic target zone is from $2,046 to $2,069.