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Spot gold may retest a resistance at $1,673 per ounce, a break above, which could lead to a gain of $1,686.
The metal is riding on a wave c, which can travel to $1,690. A weak wave c may end around $1,670, its 61.8 per cent projection level.
The pivotal support is at $1,660, a break below would open the way towards $1,644 and suggest completion of the bounce from $1,617.
On the daily chart, the metal broke resistance at $1,657. It is supposed to rise towards $1,686. Only a further gain could confirm an escape from a falling channel.
A brief piercing above the channel followed by a failure to break $1,686 would be regarded as a bearish signal that the downtrend may extend further within the channel.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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