Spot gold rangebound between $1,278 and $1,291

SINGAPORE: Spot gold may be rangebound between $1,278 and $1,291 per ounce for one day before seeking its next direction.

The range is formed by the 61.8 percent Fibonacci retracement of the uptrend from the Oct. 6 low of $1,260.16 to the Oct. 16 high of $1,306.07 and the 50 percent retracement of the downtrend from $1,306.07 to the Oct. 19 low of $1,276.22.

The bounce from $1,276.22 may consist of three waves. So far, only the first wave has completed. The second wave labelled b may end above $1,276.22 and the wave c will then travel towards $1,291.