SINGAPORE: A bullish target at $1,245 per ounce has been aborted for spot gold and a bearish one at $1,216 has been established.
A rebound from the Oct. 6 low of $1,183.46 is against the downtrend from the Aug. 8 high of $1,322.60, instead of the trend from the July 10 high of $1,345, as gold failed to break resistance at $1,237, the 38.2 percent Fibonacci retracement on the fall from $1,322.60 to $1,183.46.
The immediate support will be at $1,216, the 23.6 percent retracement, a break below which will lead to a further loss to $1,204, the 14.6 percent level. A break above $1,237 will open the way towards $1,253, the 50 percent level.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. 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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