SINGAPORE: Spot gold may slowly drop towards a range of $1,687-$1,704 per ounce, driven by a wave C.
This wave looks incomplete, as it is capable of travelling to $1,664, the 100% projection level. The bounce triggered by the support at $1,687 seems to have ended around a resistance at $1,748.
A break above $1,748 will not only lead to a gain to $1,768, but also signal a completion of the wave C.
On the daily chart, the metal is consolidating around a support at $1,718.
The consolidation could be a preparation for a further drop, as the downtrend from the Aug. 7 high of $2,072.50 may have resumed.
Driven by a wave C, the trend may extend to $1,671, or a much lower level of $1,520.