SINGAPORE: A bearish target at $1,600 per ounce is unchanged for spot gold, as indicated by its wave pattern and a Fibonacci retracement analysis.
A five-wave cycle has been completed on the rebound that started from the Dec. 29, 2011 low of $1,521.94 per ounce. It peaked around a strong resistance at $1,662, the 50 percent Fibonacci retracement on the fall from $1,802.60 to $1,521.94.
The subsequent retracement is expected to reach the trough of wave "4", which is about $1,600.
A resistance is at $1,650, a break above which will neutralize the signals.
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.
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