These resistances are identified as the 161.8 percent and 176.4 percent projection levels of an upward wave C from $1,195.90.
It is critical that gold stays above a support at $1,321, as a break below this level will not only cause a loss to $1,311, but also indicate the completion of the wave C.
Five smaller waves make up the wave C. The third wave labeled (3) has much extended. The current wave (5) may be much shorter, to end very soon.
On the daily chart, gold has broken a resistance at $1,317, the 76.4 percent retracement of the uptrend from $1,159.96 to $1,365.23. It is heading towards $1,337. A huge wedge suggests a higher target around $1,365.
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** 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.