SINGAPORE: Spot gold may retest a resistance at $1,721 per ounce, a break above which could lead to a gain into $1,728-$1,739 range.

The correction triggered by the resistance on July 18 has been so deeply reversed that the bounce from the July 14 low of $1,697.07 may have resumed.

However, market is still trapped in the neutral range of $1,700-$1,721, undecided about its next direction.

Spot gold neutral in $1,700-$1,711 range

A clearer trending signal will appear after the metal leaves the range.

A break below $1,700 could confirm a target of $1,683. On the daily chart, the sideways move over the past few days looks like the calm before a storm.

A violent rise or fall may start very soon without much warning.

To a drop, the support zone of $1,680-$1,684 could be the limit, while a rise may extend to $1,748.