SINGAPORE: Spot gold is expected to break a support at $1,720 per ounce and fall into a range of $1,705-$1,709, as it has completed a bounce from $1,690.10.
The bounce could be well broken into five waves, most of which unfolded within a rising wedge that looks like a bearish continuation pattern.
With the wave 5 having completed around a resistance at $1,735, the bounce was over and the downtrend has resumed.
Immediate resistance is at $1,729, a break above which may lead to a gain into $1,735-$1,744 range. On the daily chart, gold looks exhausted around a resistance of $1,733.
Spot gold biased to rise towards $1,729 before falling
The downtrend remains steady within a falling channel, which suggests a target around $1,610.
A break above $1,733 may lead to a gain into $1,761-$1,808 range, while a break below $1,709 could signal the continuation of the downtrend towards $1,611.
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