SINGAPORE: Spot gold looks neutral in a range of $1,702-$1,717 per ounce, and an escape could suggest a direction.
The metal is consolidating around a resistance at $1,709, the 161.8% projection level of a wave c from $1,615.59.
The consolidation sends the very early signal of the completion of this wave.
However, confirmation is yet to be given.
A break below $1,702 will clear doubt and confirm the completion.
A bearish target zone of $1,687-$1,695 will be established accordingly.
A break above $1,717 could lead to a gain into $1,723-$1,731. On the daily chart, a projection analysis reveals a resistance at $1,709, around which a spinning top formed on Wednesday.
This candlestick pattern symbolizes both the hesitation and weakness of the market.
Probably, a pullback towards the lower channel is due.