Spot gold neutral in $1,658-$1,670 range

SINGAPORE: Spot gold looks neutral in a range of $1,658-$1,670 per ounce.

An escape could suggest a direction.

The metal is riding on a wave c from $1,637.23, which could either end around $1,670 or extend to $1,690.

The consolidation below $1,670 provides little clue of the following direction.

A break below $1,658 may signal the completion of the wave c.

A bearish target zone of $1,644-$1,650 will be established.

Spot gold may retest resistance at $1,673

A break above $1,673 may open the way towards $1,686.

On the daily chart, the metal looks undecided about its next move.

Even though it has broken a resistance at $1,657 and is supposed to rise towards $1,686, its sluggish performance on Thursday simply suggests the opposite direction.

The lack of a strong momentum could be due to a mixed sentiment around the channel line, which could only be broken with some serious push.

The longer the metal hovers around $1,657, the more likely it drops towards $1,611.