The support is provided by the 76.4 percent Fibonacci projection level of a downward wave (c) that started at the April 14 high of $1,330.90. Stronger than expected, this support has stopped gold from falling for a few days.
However, the consolidation around $1,243 just can't be endless, as the wave c may extend either to $1,229, the 138.2 percent projection level, or to $1,214, the 161.8 percent level.
A drop to $1,239 could confirm the break below the support, while a rebound from the current level may be limited to $1,253, the 100 percent projection level of the wave c.
The views expressed are his own.
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