SINGAPORE: Spot gold looks neutral in a range of $1,666 to $1,685 per ounce, and an escape could suggest a direction.
The metal is presumed to be riding on a wave c from $1,655.15, which may travel to $1,690.
However, the extension of this wave will only be confirmed when gold breaks the resistance at $1,685.
A break below $1,666 may open the way towards the Thursday low of $1,655.15.
The downtrend from $1,765 remains steady, as it is expected to eventually extend to $1,635.
On the daily chart, gold is still stuck within a range of $1,657 to $1,686.
The sideways move simply can’t last forever.
Either by end of this week or early next week, the metal would get out of this range. Most likely gold would fall towards $1,611, as suggested by a flag and a falling channel.