Spot gold to rebound to $1,342/oz

SINGAPORE: Spot gold will rebound slightly to $1,342 per ounce, based on its wave pattern and a Fibonacci projection.

A small wave "c" is progressing to the 100 percent Fibonacci projection level, based on the length of the wave "a". At the moment, it is not certain yet if the rebound will be extended to $1,349, the 161.8 percent level.

The medium-term downtrend remains bearish, and it is likely to resume after the rebound completes at $1,342.

Support is at $1,322, a fall below which will confirm the resumption of the downtrend and will open the way towards $1,294.