SINGAPORE: Spot gold is expected to slide to $1,218 per ounce, as it has broken a support at $1,233.
The support was provided by the 138.2 percent Fibonacci projection level of a downward wave C that developed from the Aug. 8 high of $1,322.60.
The next support will be at $1,218, the 161.8 percent level.
It won't be a surprise if gold falls to $1,209, the 176.4 percent level, as the metal could eventually reach $1,184.50, the Dec. 31, 2013 low, over a longer period.
A break above $1,233, now a resistance, could lead to a further gain to $1,243, the 123.6 percent projection level.
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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