SINGAPORE: Spot gold may test a support at $1,711 per ounce, following its two failures to break a resistance at $1,739.

The failures confirm a completion of the bounce from the July 21 low of $1,680.25. The bounce was driven by a wave 4, which will be reversed by the current wave 5.

A break above $1,728 may lead to a gain to $1,739.

A further gain could be extended into $1,748-$1,769 range. On the daily chart, the downtrend remains steady within a falling channel.

Spot gold may fall into $1,700-$1,711 range

As long as the metal hovers below $1,749, the bearish outlook will keep intact.

A break above this level may signal a reversal of the downtrend from the March 8 high of $2,069.89.