SINGAPORE: Spot gold is expected to fall into a range of $1,675-$1,679 per ounce, as suggested by a bearish wedge and a projection analysis.
The wedge has been confirmed, indicating a target around $1,650.
A realistic target could be either $1,679 or $1,675, both of which would be confirmed when gold breaks $1,691. Resistance is fixed at $1,698, a break above which may lead to a gain into $1,706-$1,710 range.
On the daily chart, gold is approaching a support at $1,686 again.
Following its failure on Sept. 1, it is likely to finally overcome this barrier and fall towards $1,657.
Spot gold to revisit Sept. 1 low of $1,687.60
The downtrend looks steady within a falling channel, which points at $1,611.
Indeed, the trend became firmer, after the moderate bounce from the Sept. 1 low of $1,687.60.
As the bounce simply betrayed the nervousness of bulls when they tried to push the price up.
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