SINGAPORE: Spot gold is expected to gain more to $1,320 as it has broken above a resistance at $1,305 per ounce.
The resistance was provided by the 38.2 percent Fibonacci retracement on the rise from the June 3 low of $1,240.61 to the July 10 high of $1,345. The next resistance will be at $1,320, the 23.6 percent retracement.
It is hard to categorize the gain from the Aug. 1 low of $1,280.40, which could be considered as an extension of the preceding uptrend from $1,240.61 or just a rebound against the fall from $1,345.
A drop to $1,302 may signal a false break above $1,305 and the target at $1,320 has to be temporarily aborted.
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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