SINGAPORE: Spot gold looks neutral in a narrow range of $1,412-$1,427 per ounce, and an escape could suggest a direction.
The range is formed by the 14.6% and the 23.6% projection levels of an uptrend form $1,265.85, which ended at the June 25 high of $1,438.63.
A break above $1,427 could signal the progress of an upward wave iii towards $1,452, while a break below $1,412 could open the way towards $1,386.49.
The rise from $1,386.49 could be broken down into three waves, which could be making a bigger wave 5. Based on this wave count, gold is likely to rise to $1,452.
However, sometimes, the fifth wave consists of only three smaller waves. The wave 5 may have peaked around $1,452 as well. A further development of the chart is needed to evaluate the next move.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.