SINGAPORE: Spot gold may retest a resistance at $1,290, with a good chance of breaking above it and rising further to $1,301, as indicated by a triangle and a Fibonacci retracement analysis.
The rebound from the Aug. 21 low of $1,273.06 may extend, as the drop from the Aug. 26 high of $1,290.80 has been shaped into a triangle, which is a bullish continuation pattern.
The Fibonacci retracement on the fall from the July. 10 high of $1,345 to $1,273.06 reveals the resistance at $1,290, the 23.6 percent level that has triggered the correction from $1,290.80. The next resistance will be at $1,301, the 38.2 percent level.
Support is at $1,280, the 14.6 percent Fibonacci retracement on the fall from the Aug. 8 high of $1,322.60 to $1,273.06, a break below which will cause a further loss to $1,273.06.
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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