SINGAPORE: Spot gold may test a support at $1,744 per ounce, a break below which could cause a fall into $1,729-$1,736 range.

The metal is riding on a wave c, which has travelled far below its 161.8% projection level of $1,762. Chances are it may extend to $1,736.

The support at $1,744 is strengthened by another one at $1,742.

It is not very clear if these supports could work together to trigger a bounce.

Such a bounce will most likely be limited to $1,754. On the daily chart, the support at $1,755 has been broken.

Spot gold may rise into $1,801-$1,812 range

The break opened the way towards $1,727.

The lower the metal drops, the more unlikely it retests a falling trendline.

A break above $1,755, now a resistance, may lead to a gain to $1,779.