SINGAPORE: Spot gold may test a support at $1,711 per ounce, with a good chance of breaking below this level and falling toward $1,700.

The metal failed twice to break a resistance at $1,739.

The failures confirm a completion of the bounce from the July 21 low of $1,680.25. The bounce was driven by a wave 4, which will be reversed by the current wave 5.

The slow drop from the July 22 high of $1,738.99 is regarded as a prelude to a much faster fall, as a wave five is generally quick and sharp.

A break above $1,721 may lead to a gain into $1,728-$1,739 range.

On the daily chart, the downtrend remains intact within a falling channel.

Spot gold may test support at $1,711

The trend could have resumed, as the metal failed to leave the channel.

A break above $1,828 would be the very early signal of an escape from the channel. It may open the way towards $1,775.