SINGAPORE: Spot gold may revisit its April 24 low of $1,268.24 per ounce, as it failed to break a resistance at $1,307.
The resistance has been established at the 61.8 percent Fibonacci retracement on the fall from the April 14 high of $1,330.90 to $1,268.24. Coincidentally, a trendline descending from the March 17 high of $1,391.76 has provided a similar resistance.
Gold's failure to break the trendline signals a resumption of the downtrend from $1,330.90. A break may trigger a gain to $1,316, the 76.4 percent retracement. However, the gain is likely to be followed by a pullback towards $1,307.
The views expressed are his own.
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