Spot gold to drop to $1,722/oz

SINGAPORE: Spot gold will fall to $1,722 per ounce, as a downward wave "C" is progressing.

The rebound from the Nov. 21 low of $1,665.88 peaked at $1,754 on Thursday, around a strong resistance at $1,764, the 61.8 percent Fibonacci retracement on the fall from $1,794.99 to $1,665.88.

A Fibonacci projection analysis of the wave "C" target points to $1,722, the 23.6 percent level, while the downside could be easily extended to $1,702, the 38.2 percent level.

Eventually, the $1,665.88 level will be broken below over a longer period.

A rise above $1,754 will be capped at $1,765, a 76.4 percent Fibonacci retracement.

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.