SINGAPORE: Signals are mixed for spot gold, as it is consolidating within a wedge.
A target will be established when the metal gets out of the range of $1,706-$1,726 per ounce.
The bias seems to be towards the downside, as a failed fifth wave, labelled 5, may have ended around $1,726.
A break above $1,718 may led to a gain into $1,726-$1,735 range, while a break below $1,706 could be followed by a drop to $1,689.
On the daily chart, gold is stuck in a neutral range of $1,709-$1,733, which is similar to the one on the hourly chart. An escape could suggest a direction.
The consolidation within the range may turn out to be a bullish continuation pattern, if the metal breaks $1,733.
A break below $1,709 would suggest the progress of a wave “a” within the falling channel.