SINGAPORE: Spot gold may break a support $1,773 per ounce and fall into a range of $1,756-$1,767, probably after a weak bounce towards $1,784.

A five-wave cycle from $1,680.25 has reversed. Over the next few days, gold is expected to drop towards a wide range of $1,711-$1,754, formed by the bottoms of the wave b and the wave d.

The metal failed twice to break $1,773. The failures suggest the formation of a temporary bottom around this level.

Spot gold may retest support $1,773

A break above $1,784 may lead to a gain to $1,794. On the daily chart, gold failed to break both a falling trendline and a strong resistance at $1,801.

The failure would result in either a deep correction or a continuation of the downtrend. The metal has broken a support at $1,779.

The break opened the way towards $1,755.