SINGAPORE: Spot gold is expected to test a resistance at $1,298 per ounce, a break above which will lead to a further gain to $1,316.
The resistance is provided by the 38.2 percent Fibonacci retracement on the fall from the March 17 high of $1,391.76 to the June 3 low of $1,241. It has become a target simply because gold broke above a former resistance at $1,276, the 23.6 percent retracement.
A fall below $1,276 will be considered as a pullback towards a trendline descending from $1,392. Only a deeper drop to $1,268 could signal a completion of the rebound from $1,240.61.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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