SINGAPORE: Spot gold may test a support at $1,719 per ounce, a break below which could cause a fall into $1,677.77-$1,697 range.

The fall on April 9 is so deep that it suggests a completion of the bounce from $1,677.70.

A presumed double-bottom pattern forming around $1,678 looks doubtful. The rise from $1,677.70 could be a part of a flat pattern.

A flat would mean a drop towards $1,677.70.

Given that gold has broken a support at $1,744, it is likely to fall to $1,719.

A break above $1,744 may lead to a gain to $1,758.

A further gain could confirm a double-bottom, and a bullish target of $1,852 will be established accordingly.

On the daily chart, it looks like gold is pulling back towards a falling trendline. The pullback may extend to $1,693. Chances are the metal may drop more to $1,651 once it reaches $1,693.

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