SINGAPORE: Spot gold may retest a resistance at $1,673 per ounce, a break above which could lead to a gain to $1,686.
The metal is riding on a wave c, which is capable of travelling to $1,690.
A weak wave c may end around $1,670, its 61.8% projection level.
The pivotal support is at $1,660, a break below which will not only open the way towards $1,644, but also suggest the completion of the bounce from $1,617. On the daily chart, the metal broke a resistance at $1,657.
Spot gold biased to retest support at $1,644
It is supposed to rise towards $1,686. Only a further gain could confirm an escape from a falling channel.
A brief piercing above the channel followed by a failure to break $1,686 would be regarded as a bearish signal that the downtrend may extend further within the channel.
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