The resistance is identified as the 61.8 percent projection level of a downward wave C from $1,324.33. The next resistance will be at $1,291, a break above which could lead to a further gain to $1,299. A falling trendline suggests that the current bounce may end around $1,299.
On the daily chart, gold has cleared a resistance at $1,283, the 38.2 percent retracement on the uptrend from $1,180.34 to $1,346.73. Based on this retracement analysis, the metal may climb to $1,307. However, this target will only be confirmed when gold breaks the falling trendline.
A break below $1,283, now a support, may signal the continuation of the downtrend towards $1,264.
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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.