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.
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