SINGAPORE: Spot gold may bounce into a range of $1,768-$1,776 per ounce, as it managed to stabilise around a support at $1,748.
The support is identified as the 114.6% projection level of a downtrend from $1,808.50.
The support at $1,724 triggered a bounce which seems to have ended around a resistance at $1,782, as it could be broken down into three waves.
The first round of the fall from the Oct. 8 high of $1,781.20 is over. It may be moderately reversed before resuming.
A break below $1,748 could confirm the continuation of the drop towards $1,724.
On the daily chart, gold failed to break a resistance at $1,773. The failure, along with the shooting star on Oct. 8, indicates a drop towards $1,739.
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