SINGAPORE: Spot gold may bounce to $1,830 per ounce, as it has broken a resistance at $1,816. The metal touched a low of $1,806.50 on Monday, narrowly missing its target of $1,793.

The subsequent bounce sends an early signal that the downtrend could be reversing.

The reversal will be confirmed if gold rises to $1,830.

A break below $1,806 may trigger a shallow drop to $1,793, around which, a decent bounce may occur, which will be of same degree to the one from the Feb. 6 low of $1,860.

On the daily chart, there as a false break below a support of $1,813.

Gold may either consolidate around $1,813 or bounce towards $1,833.

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Volatility so far has been low. It is unrealistic to expect a sharp surge from the current level.

An sudden increase of the volatility could indicate either a reversal of the downtrend or the start of a deep fall.