SINGAPORE: Spot gold may fall into a range of $1,700-$1,711 per ounce, as a bounce triggered by the support at $1,683 may have completed.
The bounce was driven by a wave 4, which will be reversed by the downward wave 5.
The former failed to break a resistance at $1,739.
The failure, along with the subsequent drop, strongly suggests its completion.
Immediate resistance is at $1,728, a break above which may lead to a gain into $1,739-$1,748.
Strategically, the target zone of $1,700-$1,711 will be confirmed when gold breaks the support at $1,721.
On the daily chart, the downtrend remains steady within a falling channel.
Spot gold may retrace towards $1,700 before rising
Even though readings on the hourly chart suggest a completion of the bounce, there is no convincing reversal pattern on the daily chart yet.
A further gain from the current level could most likely be limited to $1,749.
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