Spot gold is expected to break below a support at $1,293 per ounce, and fall further to $1,280. The metal has cleared a barrier at $1,305, the 38.2 Fibonacci retracement on the rise from the June 3 low of $1,240.61 to the July 10 high of $1,345 to $1,291.70. Wave pattern suggests it is riding on wave (3), which is powerful enough to travel to $1,280, the 61.8 percent level. A sudden rise above $1,305 will signal a false break below this level, and the target at $1,280 has to be temporarily aborted. However, the 23.6 percent level at $1,320 may not be targeted immediately as it could be too early then to assume that the short uptrend from the July 15 low of $1,291.70 has extended.
Posted on: Thu, 24 Jul 2014 06:15:40 +0000
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