SINGAPORE: Spot gold may revisit its Sept. 16 low of $1,653.10 per ounce, as the bounce from this level seems to have ended around a resistance at $1,679.

The metal is riding on a wave C from $1,765.39, which is capable of travelling to $1,635. Many smaller waves make up this wave.

The part of this wave from $1,731.69 consists of five smaller waves.

The most powerful wave 3-3 is unfolding. Gold failed twice to break a resistance at $1,679.

The failures suggest a completion of the bounce.

Spot gold to fall into $1,644-$1,648 range

A break above $1,679 may lead to a gain into $1,685-$1,691 range.

On the daily chart, the downtrend looks steady within a falling channel, which points at a target of $1,611.

A bearish flag indicates a similar target.

The bounce from the Sept. 16 low of 1,653.10 could be classified as a pullback towards the flag.