SINGAPORE: Spot gold may test a support at $1,743 per ounce, a break below which could cause a fall into the $1,724-$1,736 range.
The fall from the Sept. 3 high of $1,833.80 adopted a five-wave mode.
The metal is riding on a powerful wave (3), which is likely to extend to $1,724.
The bounce from the Sept. 8 low of $1,781.30 has been almost reversed. The reversal signals a continuation of the wave (3).
Earlier, Gold prices hit a more than five-week low on Monday, as the dollar firmed with markets closely watching a US Federal Reserve meeting for clues on when the central bank will start tapering its pandemic-era stimulus.
Spot gold fell 0.3% to $1,748.13 per ounce by 0500 GMT, having earlier touched its lowest level since Aug. 12 at $1,741.86.
US gold futures fell 0.2% to $1,748.60.
The dollar index hit a near one-month high, hurting gold’s appeal for holders of other currencies.
An extension of the bounce may be limited to $1,763.
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