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SINGAPORE: Spot gold may retest a support at $1,700 per ounce, a break could open the way towards $1,683.

A fresh low of $1,697.07 was touched on Thursday, which is lower than $1,707.09 hit on Wednesday.

This lower low confirmed the downtrend from $1,857.32.

The trend is riding on a wave C which may travel into $1,666-$1,683 range.

Resistance is at $1,721, a break above which may lead to a gain into $1,728-$1,739 range.

Gold slides as dollar rallies on steep Fed rate hike bets

On the daily chart, the first wave of counter attack by bulls on a battlefield of $1,706 proved failed, after the spinning top on Wednesday was defeated by a big black candlestick on Thursday.

The second wave of assault could most likely be launched around a support zone of $1,680-$1,684, as suggested by a falling channel.

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