SINGAPORE: Spot gold may bounce into a zone of $1,941-$1,960 per ounce, as suggested by the hourly MACD.
A bullish divergence appeared on the indicator, suggesting an exhaustion of the fall.
A projection analysis on the fall from $2,058.96 reveals a support at $1,903, which triggered a bounce.
Three legs may make up the bounce. The third leg is unfolding.
A break below $1,903 could open the way towards $1,880-$1,891 range.
On the daily chart, the fall from $2,069.89 may have been driven by a wave C, the third wave of a three-wave cycle from $2,072.50.
A projection analysis on this wave reveals a strong support at $1,918 which is working together with the support on the hourly chart to stop the fall.
A break below $1,918 may cause a shallow fall to $1,890.
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