SINGAPORE, Aug 31Spot gold may test a support at $1,710 per ounce, a break below which could open the way towards $1,680-$1,698 range.
The metal broke a key support at $1,729 again. The break sends a convincing signal of the downtrend extension towards $1,710.
A break above $1,726 could indicate an extension of the bounce from $1,719.56. However, how far the bounce could extend would be unclear, as the bounce could reach any level below $1,742.
On the daily chart, gold finally broke a support at $1,727. The break confirms both a target zone of $1,694-$1,709 and a continuation of the downtrend.
After its second failure to break the falling trendline, gold may have ruined all its chances to extend its uptrend from $1,680.25.