SINGAPORE: Spot gold may edge up to a resistance at $1,685 per ounce before falling, as suggested by a short channel.
The bounce from the Sept. 16 low of $1,653.10 has extended. It is riding on a wave c, which is unfolding towards $1,685, as pointed to by a rising channel.
However, all these waves are only making up a bounce against the downtrend from $1,731.69, which has been driven by a wave C that may travel to $1,635.
Based on this wave count, the upside could be very limited.
Spot gold may revisit Sept. 16 low of $1,653.10
A break below $1,671 could open the way towards the $1,660-$1,667 range.
On the daily chart, the consolidation within a range of $1,657-$1,686 goes on.
It is classified as a pullback towards a bearish flag, which indicates a target of $1,611.
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