The wave pattern indicates the metal is riding a wave "C", which may travel to $1,725, a 100 percent Fibonacci projection level.

However, the resistance zone is formed by the 61.8 percent Fibonacci projection level and the 50 percent Fibonacci retracement on the fall from $1,813.60 to $1,534.49, it may stop gold to gain more.

Support is at $1,644, a fall below which will signal the wave "C" could have been completed, and a medium-term downtrend will resume.

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