SINGAPORE: Spot gold may retest a support at $1,728 per ounce, a break could trigger a drop into $1,711-$1,721 range. The metal is riding on a wave C from $1,857.32.
This wave has travelled briefly below its 161.8% level of $1,739.
It is highly likely to extend into $1,666-$1,683 range.
The part of this wave from $1,814.01 consists of five smaller waves.
The wave 5 could be broken down into five mini waves.
The bounce triggered by the support at $1,728 may have been driven by the wave iv, which will be reversed by the downward wave v.
A break above $1,748 could lead to a gain into $1,756-$1,767 range.
On the daily chart, the downtrend within a bigger channel remains steady. The trend is extending towards $1,680, as pointed by the channel.
Some weak bounces may interrupt the downtrend. A decent bounce, however, may only occur in the support zone of $1,680-$1,684.
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