SINGAPORE: Spot gold may retest a support at $1,825 per ounce, a break below which could open the way towards $1,806-$1,816 range.
The rise observes closely a set of projection levels on the uptrend from $1,738.30. Another projection analysis on a wave C from $1,727.50 marks a set of broad reference levels.
Given that the metal has briefly pierced below $1,833, it may retrace more towards $1,813. A break above $1,847 could lead to a gain into $1,858-$1,869 range.
On the daily chart, gold lost its momentum after touching a resistance at $1,864, which is strengthened by another one at $1,842.
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The multiple bearish divergence on the RSI confirms an exhaustion of the rally. Market may retrace further. A bullish target zone of $1,891-$1,919 has been temporarily aborted.