SINGAPORE: Spot gold may bounce moderately into a range of $1,763-$1,768 per ounce, before resuming its fall towards a support of $1,724.
The support is identified as the 161.8% projection level of a downtrend from $1,808.50.
The bounce triggered by this support may have ended around a resistance at $1,782, as it could be broken down into three waves.
The fall from the Oct. 8 high of $1,781.20 could be too sharp to sustain.
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, a retracement analysis on the fall from $1,916.40 reveals a resistance at $1,773, around which the bounce completed.
The shooting star on Oct. 8 indicates a drop towards $1,739 on Monday.
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