SINGAPORE: Spot gold is expected to fall into a range of $1,296-$1,301 per ounce, as suggested by its wave pattern and a retracement analysis.
The correction from the Jan. 31 high of $1,326.30 has not completed. It is driven by wave (4), the forth wave of a five-wave cycle from $1,195.90. It may extend into the range of a previous wave 4, which is roughly from $1,279 to $1,296.
Three smaller waves make up the wave (4). The third wave labeled c is unfolding towards the target zone, which is formed by the 61.8 percent and the 50 percent retracements of the rally from $1,276.59 to $1,326.30. The zone is pointed by a rising trendline as well.
On the daily chart, gold is falling towards $1,287, the 61.8 percent retracement of the uptrend from $1,159.96 to $1,365.23. Resistance is at $1,317, a break above which could lead to a gain to $1,337.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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