SINGAPORE: Spot gold may break a support at $1,660 per ounce and fall towards $1,642, probably after a weak bounce towards $1,674.

The bounce is expected to be much weaker than the one on Tuesday.

Most likely, it will be limited to $1,674.

A further gain could complicate the picture. However, until the resistance at $1,689 is broken, the trending signals will not turn bullish.

On the daily chart, the downtrend remains steady within a falling channel.

Spot gold to fall towards $1,642

A projection analysis on the downtrend from $1,807.79 reveals a support of $1,657, which strengthens the one at $1,660 (hourly chart).

These supports are working together to temporarily stop the fall.

However, gold could eventually overcome these barriers and drop deeply towards $1,536, as suggested by a falling channel.