SINGAPORE: Spot gold is expected to fall into a range of $1,660 to $1,674 per ounce, as it has more or less broken a support at $1,689.
The break looks reliable following the first failure of the metal on Oct. 7.
The depth of the drop from the Oct. 4 also indicates a reversal of the uptrend from $1,613.60.
Resistance is fixed at $1,700, a break above which may lead to a gain into $1,706-$1,718 range.
On the daily chart, gold failed to escape from a falling channel.
The failure increases the chance of a drop towards the Sept. 28 low of $1,613.60.
The downtrend from the March 8 high of $2,069.89 remains steady.
It is riding on a wave a, which could travel to $1,536.