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.

Spot gold may fall to $1,784

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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