Spot gold may test support at $4,340 - Reuters technicals

Spot gold may test support at $4,340 per ounce, with a good chance of breaking below this level and falling toward the $4,275-$4,300 range, Reuters technical analyst Wang Tao said. The metal failed twice to break resistance at $4,406, suggesting the formation of a top and the completion of a bounce from $4,235. Signals may not necessarily turn bullish if the market stabilizes around $4,340. Only a break above $4,406 could confirm the extension of the bounce toward the $4,446-$4,474 range.