SINGAPORE: Spot gold may break a support at $1,721 per ounce, and fall towards $1,700-$1,711 range, driven by a wave C.
This wave is expected to travel into a range of $1,666 to $1,683, as it has extended far below its 161.8% projection level of $1,739.
A realistic target would be $1,711 or $1,700. Resistance is at $1,739, a break above may lead to a gain into $1,748-$1,756 range.
On the daily chart, the downtrend remains intact within a big channel, which suggests a target of $1,680. The metal has broken a support at $1,727. It is expected to drop to $1,706 first.
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The whole downtrend from the March 8 high of $2,069.89 could be near its ending point.
The current speculation is the trend reversal may occur around a support zone of $1,680 to $1,684.
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