SINGAPORE: Spot gold may test a support at $1,700 per ounce, as it failed to break a resistance at $1,717.

The failure suggests a completion of a wave 4, the fourth wave of a downtrend from $1,765.39.

This wave is expected to be reversed by a downward wave 5.

A break above $1,717 may lead to a gain into $1,722-$1,728 range.

On the daily chart, the current fall is closely related to the preceding drop from $1,877.05.

Spot gold may test resistance at $1,700

A projection analysis reveals a support at $1,686, the 61.8% level, which temporarily stopped the fall.

The downtrend looks far from complete. It remains firm within a falling channel, which suggests a target around $1,582.