SINGAPORE: Spot gold may break a support at $1,660 per ounce and fall towards $1,642, probably after a consolidation in the range of $1,660 to $1,674.
The metal consolidated in the range between Sept. 30 and Oct. 3.
The symmetrical nature of chart suggests a sideways move in the range again.
A break above $1,674 may lead to a gain to $1,689. On the daily chart, the downtrend remains steady within a falling channel.
A projection analysis on the downtrend from $1,807.79 reveals a support of $1,657, which is close to $1,660 (hourly chart).
Spot gold to fall into $1,660-$1,674 range
These supports are working together to stop the fall. However, they look vulnerable in light of the current strong bearish momentum.
Eventually, gold could overcome this barrier and drop deeply towards $1,611.
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