SINGAPORE: Spot gold may retest a support at $1,789 per ounce, a break below which could cause a fall to $1,774.
The first round of the rise from $1,749.20 may have completed, as suggested by the sharp correction from the Tuesday high of $1,814.78.
A retracement analysis on the fall from $1,916.40 to $1,749.20 reveals a resistance at $1,813, around which, the rise happened to end.
Such a coincidence is a convincing signal that the first rise is over. A break above $1,813 could lead to a gain to $1,833.
On the daily chart, the metal is riding on a wave c which is expected to travel into $1,840-$1,897 range.
Following its failure to break the resistance at $1,806, the metal may seek a support at $1,784.
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