SINGAPORE: Spot gold looks neutral in a range of $1,660-$1,674 per ounce, and an escape could suggest a direction.
The bias could be towards the upside, as the big swing of the price from Thursday’s low of $1,641.80 strongly suggests a reversal of the downtrend from the Oct. 5 high of $1,727.59.
Most likely, gold would break $1,674 and rise towards $1,689.
A break below $1,660 may open the way towards $1,642.
On the daily chart, the downtrend remains steady within a falling channel, which suggests a target of $1,536.
Spot gold poised to break support at $1,660
Wave pattern indicates the progress of a wave (C), which could at least travel to $1,611.
However, the trend may only resume after the second bounce towards the upper channel line. The bounce may end around $1,686.
A close below $1,657 on Friday could indicate the continuation of the downtrend.
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