Tuesday, 04 August 2015 13:50
,075″ alt=”Spot gold may break support at ,075″ width=”400″ height=”235″ src=”https://globalrubbermarkets.com/wp-content/uploads/2021/09/spot-gold-may-hover-above-1116.jpg”>SINGAPORE: Spot gold may test support at $ 1,075 per ounce, with a good chance of breaking below this level and falling further into a range of $ 1,056-$ 1,066.
Support is provided by the 186.4 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle that developed from the May 18 high of $ 1,232.20.
A wedge developing above this support is ending. It is a typical continuation pattern, to be followed by another round of drop towards $ 1,056, the 214.6 percent level.
It is not very clear how fast the expected drop will be and a slow one may only extend the 200 percent level at $ 1,066.
