SINGAPORE: Spot gold may fall into a range of $1,700-$1,711 per ounce, as a bounce triggered by the support at $1,683 may have completed.

The bounce was driven by a wave 4, which will be reversed by the downward wave 5.

The former failed to break a resistance at $1,739.

The failure, along with the subsequent drop, strongly suggests its completion.

Immediate resistance is at $1,728, a break above which may lead to a gain into $1,739-$1,748.

Strategically, the target zone of $1,700-$1,711 will be confirmed when gold breaks the support at $1,721.

On the daily chart, the downtrend remains steady within a falling channel.

Spot gold may retrace towards $1,700 before rising

Even though readings on the hourly chart suggest a completion of the bounce, there is no convincing reversal pattern on the daily chart yet.

A further gain from the current level could most likely be limited to $1,749.