Spot gold to drop to $1,229

SINGAPORE: Spot gold is expected to drop to $1,229 per ounce, driven by a wave (3)-3.

This is the third wave of a five-wave cycle that developed from the Nov. 14 high of $1,294. It followed the completion of the preceding wave (3)-2, which had been slightly extended.

A Fibonacci projection analysis reveals an immediate target at $1,229, the 38.2 percent level, a break below which will lead to a further loss to $1,213, the 61.8 percent level.

A surge above $1,254.60 will confirm a bullish triangle, which points to a target at $1,279.

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.