SINGAPORE: Spot gold may break a support at $1,644 per ounce and drop into a range of $1,625-$1,633, as the bounce from $1,617 has completed around a key resistance at $1,673.

The bounce is against the downtrend from $1,729, which adopted a five-wave mode.

Despite its strength, the bounce from $1,617 could just be a spray from a big wave that may drive the metal far below $1,617.

Resistance is at $1,660, a break above which could lead to a gain to $1,673. On the daily chart, the downtrend remains firm within a falling channel, which suggests a target of $1,536. A projection analysis reveals a support at $1,611.

The bounce from the Oct. 21 low of $1,617 was caused by the support.

Spot gold still targets Sept 28 low of $1,613.60

Compared to the preceding one on Sept. 28, the current bounce is expected to be much weaker.

Following its failure to close above $1,657, the bounce seems complete.

A break above $1,657 could suggest the extension of the bounce towards $1,686.