SINGAPORE: Spot gold still targets a range of $1,932-$1,953 per ounce, as suggested by its wave pattern and a projection analysis.
The metal is riding on a wave c from $1,808.44. A projection analysis reveals a target zone of $1,932-$1,953, as gold has pierced twice above a key resistance at $1,898.
As long as the metal remains above a support zone of $1,877-$1,886, the target range will remain intact.
A break below $1,877 could trigger a further drop towards $1,853-$1,864 range.
On the daily chart, gold is rising towards $1,959.01, the peak of a wave B.
The shallow correction on the hourly chart seems due to a resistance at $1,921, which works as the last barrier towards $1,959.
The small black candlestick on Tuesday is no reversal signal at all. Gold may retest the resistance, with a good chance of breaking above it and rising towards $1,959.
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