SINGAPORE: Spot gold still targets its Nov. 23 low of $1,727.50 per ounce, as the downtrend from $1,786.35 looks incomplete. The trend consists of three waves.
The current wave C is expected to travel into a range of $1,709-$1,730.
Before this wave extends into this zone, it will be controlled by a set of retracements on the fall from $1,786.35 to $1,727.50. A bounce was triggered by the support at $1,741.
Given that the wave C has not fully unfolded, the bounce may end in the zone of $1,750-$1,757.
A break above $1,757 may lead to a gain into $1,764-$1,772 range.
Such a gain could confirm a continuation of the uptrend from the Nov. 3 low of $1,615.59.
On the daily chart, gold seems neutral in a range of $1,721-1,788.
The bias is towards the downside, as the pattern between July 2020 and July 2022 looks like a double-top. The bounce from $1,613.60 could be regarded as an extended pullback towards the neckline.
Even if this pattern fails, the metal may retrace towards $1,680 first, as suggested by the symmetrical nature of the chart.