SINGAPORE: Spot gold may retest a resistance at $1,682 per ounce, a break above which could lead to a gain into $1,687-$1,695 range.
The metal is riding on a wave c, the third wave of an irregular flat from the Oct. 21 low of $1,617.
This wave has briefly travelled above its 100% projection level of $1,673.
Chances are it may extend into a range of $1,695 to $1,709. Support is at $1,665, a break below could confirm a target zone of $1,651 to $1,660. On the daily chart, gold has climbed above a falling channel.
The downtrend from the March 8 high of $2,069.89 has been violated.
Even though it is too early to conclude that trend has reversed, a further bounce towards $1,733 looks highly likely, as a solid bottom has formed around a key support of $1,611.