Spot gold to rise to $1,829/oz
SINGAPORE: Spot gold will rise to $1,829 per ounce, as an uptrend that started at the Oct. 20 low of $1,603.49 is steady.
The metal dropped to a trendline support of $1,760.04 on Tuesday, and bounced up strongly, signaling the uptrend has not been violated.
A Fibonacci retracement analysis on the fall from $1,920.30 to $1,534.49 reveals that the metal has been consolidating around $1,773, the 61.8 percent level, in a triangle, which is expected to be bullish, pointing to $1,829, the 76.4 percent level.
Support is at $1,765, a fall below which will extend to $1,735.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Copyright Reuters, 2011
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