SINGAPORE: Spot gold is biased to retest a support at $1,644 per ounce, a break below which could open the way into a range of $1,625-$1,633.

The sharp surge on Tuesday failed to extend above a resistance at $1,660.

It is thus a bit early to conclude the uptrend from $1,617 has extended.

In the meantime, a strong indication of a drop is missing as well.

Strategically, it is better to form a view when gold escapes from the range of $1,644-$1,660.

A break above $1,660 may lead to a gain into $1,673-$1,686 range. On the daily chart, the downtrend remains firm within a falling channel, which suggests a target of $1,536.

However, the metal managed to hover high above a support of $1,638.

Its reluctance to fall further could mean an incomplete bounce from the Oct. 21 low of $1,617.

A close above $1,657 could confirm the extension of the bounce towards $1,686.