SINGAPORE: Spot gold faces a resistance zone of $1,375-$1,377 per ounce, a break above which will open the way towards $1,433.31, the Aug. 28, 2013 high.
The zone has been formed by the 76.4 percent Fibonacci retracement on the fall from $1,433.31 to the Dec. 31, 2013 low of $1,184.50 and the 76.4 percent Fibonacci projection level of an upward wave C.
It could be technically difficult to confirm a break above the zone, based on gold's behaviour around an earlier resistance at $1,341, the 61.8 percent projection level.
A close above $1,387 on daily chart could be a reliable signal of this break.
However, gold will most likely pause around the zone or retrace moderately.
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.
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