Spot gold bearish target $1,565-$1,575

SINGAPORE: A bearish target range of $1,565-$1,575 remains intact for spot gold as the correction is far from completion.

The current wave decline is expected to drive the price to the 38.2 percent Fibonacci retrenchment on the rise from $1,522.35 to $1,608.70, or deeper, to the 50 percent level.

And the correction could have adopted an "a-b-c" corrective wave mode, with the rebound during the previous trading session labelled as a wave "b", to be followed by a downward wave "c".

A rise above $1,608.70 will violate the bearish outlook.

Copyright Reuters, 2011