SINGAPORE: Spot gold may break a support $1,773 per ounce and fall into a range of $1,756-$1,767, probably after a weak bounce towards $1,784.
A five-wave cycle from $1,680.25 has reversed. Over the next few days, gold is expected to drop towards a wide range of $1,711-$1,754, formed by the bottoms of the wave b and the wave d.
The metal failed twice to break $1,773. The failures suggest the formation of a temporary bottom around this level.
Spot gold may retest support $1,773
A break above $1,784 may lead to a gain to $1,794. On the daily chart, gold failed to break both a falling trendline and a strong resistance at $1,801.
The failure would result in either a deep correction or a continuation of the downtrend. The metal has broken a support at $1,779.
The break opened the way towards $1,755.
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