SINGAPORE: Spot gold looks neutral in a range of $1,660-$1,674 per ounce, and an escape could suggest a direction.

The bias could be towards the upside, as the big swing of the price from Thursday’s low of $1,641.80 strongly suggests a reversal of the downtrend from the Oct. 5 high of $1,727.59.

Most likely, gold would break $1,674 and rise towards $1,689.

A break below $1,660 may open the way towards $1,642.

On the daily chart, the downtrend remains steady within a falling channel, which suggests a target of $1,536.

Spot gold poised to break support at $1,660

Wave pattern indicates the progress of a wave (C), which could at least travel to $1,611.

However, the trend may only resume after the second bounce towards the upper channel line. The bounce may end around $1,686.

A close below $1,657 on Friday could indicate the continuation of the downtrend.