TECHNICALS-Spot gold may drop into $2,479 to $2,487 range

* For more technical analyses, click TECH/C SINGAPORE, Aug 22 (Reuters) - Spot gold XAU= may drop into a range of $2,479 to $2,487 per ounce, following its failure to break resistance at $2,520. The resistance is near the peak of a wave b. The failure to overcome this barrier signals an extension of the correction from the Aug. 20 high of $2,531.60. The correction is riding on a wave c, which is expected to travel to $2,481, assuming it's roughly equal to the wave a. The downside may not be limited to $2,481, as a five-wave cycle from the Aug. 5 low of $2,364.19 seems to have completed. The bottom of the wave d at $2,431.90 would be targeted once gold breaks $2,479. Resistance is at $2,507, a break above which could lead to a gain into the $2,520 to $2,528 range. On the daily chart, the contract faces strong resistance at $2,511. Its repeated failures to break this level cast a big doubt on the bullish triangle/pennant. A break below $2,473 will make both of these patterns invalid. * Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. ** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ xau https://tmsnrt.rs/4dCP5pB tech https://tmsnrt.rs/3yKpyf3 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Wang Tao; Editing by Mrigank Dhaniwala) (([email protected]; +65 6973 8364/9188 4196))