SINGAPORE: Spot gold faces a resistance at $1,716 per ounce. It may hover below this level for a day or retreat to $1,691.

The nature of the rise from the Wednesday low of $1,677.61 remains unclear. It could be a simple bounce against the drop from the March 18 high of $1,755.25, or an extension of the uptrend from the March 8 low of $1,676.10.

Until now, the attempt to break a falling trendline has been proved unsuccessful.

A downtrend from $1.875.26, which rides on a wave C, remains steady.

A break above $1,716 may not trigger a strong rise to $1,746, as the metal will have to break the falling trendline which establishes a resistance around $1,725.

On the daily chart, gold is yet to drop to its ultimate target of $1,651. The current rebound triggered by the support at $1,693 may end around $1,724.

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