SINGAPORE: Spot gold has found a support at $1,305 per ounce, and may hover above this level for half or one trading session before falling more.
The support has been identified as the 38.2 Fibonacci retracement on the rise from the June 3 low of $1,240.61 to the July 10 high of $1,345. Wave pattern indicates gold is riding on a powerful wave (3), the third wave of a big bearish five-wave cycle.
A drop to $1,300 will confirm the break below the support and the next support will be at $1,293, the 50 percent level, which is expected to be weak, unable to hold the fall towards the 61.8 percent retracement at $1,280.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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