SINGAPORE: Spot gold still targets $1,453, as it has cleared a support at $1,497 per ounce.
The support is identified as the 123.6% projection level of an upward wave (c) from $1,265.90. This wave consists of five waves. The fourth wave labelled 4 ended around $1,381, which is targeted over the next one or two weeks.
A realistic target will be $1,453, which will be confirmed when the metal breaks the immediate support at $1,480. A break above $1,497, now a resistance, could lead to a gain to $1,524.
On the hourly chart, the metal looks unable to break a support at $1,488, the 23.6% retracement of the uptrend from $1,265.85 to $1,557. It tried twice, but failed to overcome this barrier.
A rise above $1,501 could signal the first part of the correction from $1,557 is over, and gold may climb towards $1,537.
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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.