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SINGAPORE: Spot gold is biased to break a support at $1,232 per ounce, and fall to a lower support zone of $1,224-$1,228.
The fall from the Dec. 10 high of $1,250.55 looks deep enough to indicate a reversal of the uptrend from Nov. 13 low of $1,195. Further indication is given by the three-wave structure of the trend.
A break above $1,240 could signal an extension of the uptrend towards $1,253.
On the daily chart, it seems that the metal failed to break a resistance at $1,238, the 14.6 percent projection level of a downward wave C from $1,366.07.
Even though it manages to stay around this level, it looks more and more likely to fall towards $1,160.
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