SINGAPORE: Spot gold may test a support at $1,691 per ounce, with a good chance of breaking below this level and falling towards the range of $1,634 to $1,669.

The metal is riding on a wave C from $1,875.26, which is expected to travel into the range of $1,634 to $1,669.

After a moderate consolidation around $1,716 over the past few days, gold finally broke this level.

The break confirmed the continuation of the wave C towards its target zone.

A break above $1,746 could lead to a gain into the zone of $1,761-$1,783. On the daily chart, gold broke a support at $1,723, the 76.4% projection level on a downward wave C from $1,959.01.

This wave is travelling towards $1,651. A falling trendline indicates the occurrence of a decent bounce around this level.

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