Spot gold may fall into $1,748-$1,756 range

SINGAPORE: Spot gold may break a support at $1,767 per ounce, and fall into $1,748-$1,756 range.

A five-wave cycle from the July 21 low of $1,680.25 has completed. The cycle had been developing within a rising channel.

Gold has briefly pierced below this channel.

It is poised to move into a duplicated channel, which suggests a target of $1,739.

Resistance is at $1,784, a break above which may lead to a gain into $1,794-$1,801 range. On the daily chart, gold failed to test a falling trendline.

Its break above a resistance at $1,772 also looks fake.

Spot gold may rise into $1,801-$1,812 range

The metal is subject to a decent correction, based on the readings of both hourly and daily charts.

The correction could be shallow, probably limited to a support zone of $1,708-$1,737, as the uptrend from $1,680.25 may resume upon the completion of the correction.