SINGAPORE: Spot gold may test a support at $1,698 per ounce, a break below which could open the way towards $1,680.

More than 76.4% of the uptrend from $1,680.25 has been reversed.

Chances are this low may be revisited soon.

The metal seems to be riding on a powerful wave 3, which is capable of travelling into $1,671-$1,682 range.

Resistance is at $1,710, a break above which could lead to a gain into $1,717-$1,722 range.

Spot gold may test support at $1,710

On the daily chart, the downtrend looks firm within a falling channel, which suggests a target around $1,582.

The current fall is closely related to the preceding drop from $1,877.05.

A projection analysis reveals a wide target zone of $1,611-$1,686.

A bounce may occur around $1,680, which is expected to be much weaker than the one from the July 21 low of $1,680.25.