SINGAPORE: Spot gold may fall into a range of $1,637-$1,647 per ounce, as suggested by a bearish flag and a projection analysis.
The pattern has been confirmed, indicating a target around $1,610.
The projection analysis reveals a more realistic target zone from $1,637 to $1,647.
Strategically, the target zone will be confirmed when gold breaks $1,654.
A break above $1,669 will make the flag temporarily invalid.
On the daily chart, the consolidation within a range of $1,657 to $1,686 is about to complete by end of this week.
Most likely gold would fall towards $1,611, as suggested by a flag and a falling channel.
Indeed, the range itself looks like a bearish continuation pattern, to be followed by another round of fall.