SINGAPORE: Spot gold may break a support at $1,243 per ounce and fall more to $1,229, as its consolidation above this barrier could be ending.
The support is provided by the 76.4 percent Fibonacci projection level of a downward wave (c) that started at the April 14 high of $1,330.90. Stronger than expected, this support has stopped gold from falling for a few days.
However, the consolidation around $1,243 just can't be endless, as the wave c may extend either to $1,229, the 138.2 percent projection level, or to $1,214, the 161.8 percent level.
A drop to $1,239 could confirm the break below the support, while a rebound from the current level may be limited to $1,253, the 100 percent projection level of the wave c.
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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