The metal is riding on a wave "iii", which is unfolding towards $1,895, the 161.8 percent Fibonacci projection level, while a realistic target will be $1,850, the 100 percent level.

Retracement from the current level will be shallow, limited to $1,823, the 61.8 percent level.

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.

Copyright Reuters, 2011