SINGAPORE: Spot gold may retest a resistance at $1,721 per ounce, a break could open the way towards $1,728-$1,739 range.

The metal seems to have stabilized around a support at $1,700.

A small double-bottom is developing, which suggests a target of $1,739.

Spot gold may retest support at $1,700

A break below $1,700 may confirm the continuation of the downward wave C towards $1,683.

On the daily chart, a projection analysis reveals a pivotal support of $1,706, the 161.8% projection level of the downtrend from $1,998.

The doji on July 15 and the gain on Monday proved the support effective in stopping the downtrend.

A trend reversal could be occurring around this level.