Spot gold may rise to $1,735

SINGAPORE: Spot gold may rise to $1,735 per ounce, to complete a wave c from $1,640.30.

This wave consists of five smaller waves, most of which develop in a rising channel.

The fifth wave, the wave 5, is travelling towards $1,735, assuming it is roughly equal to the wave 1.

A break above $1,735 could lead to a gain to $1,745. Support is fixed at $1,714, a break below which may open the way towards $1,696-$1,701 range.

On the daily chart, gold looks a bit neutral in a range of $1,709-$$1,733. An escape could suggest a direction.

Spot gold may seek support around $1,708 before rising

The rise from the Sept. 28 low of $1,613.60 may have been driven by a wave x, the eighth wave of a triple-zigzag. A total of 11 waves make up the pattern.

A downward wave a is expected to start soon, to reverse the current wave x.

A close below Wednesday’s low of $1,699.50 may signal the progress of this wave a.