SINGAPORE: Spot gold is biased to break a resistance at $1,720 and rise towards $1,729, driven by a wave 5. This is the final wave of a five-wave cycle from $1,690.10.
It is unfolding within a rising wedge, which suggests a target zone of $1,729-$1,735.
A break below $1,710 could be the very early sign of the uptrend reversal.
A target zone of $1,699-$1,705 will be established accordingly.
On the daily chart, gold looks neutral in a range of $1,686-$1,733.
Only an escape could suggest a direction.
A break above $1,733 may lead to a gain into $1,761-$1,808 range, while a break below $1,686 could confirm the continuation of the downtrend towards $1,611.
The bias could be towards the downside, as the downtrend still remains steady within a falling channel, which suggests a target around $1,610.
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