Wednesday, 05 August 2015 13:08
,075″ alt=”Spot gold poised to break a support at ,075″ width=”400″ height=”262″ src=”https://globalrubbermarkets.com/wp-content/uploads/2021/09/gold-heads-for-third-weekly-drop-as-market-awaits-fed.jpg”>SINGAPORE: Spot gold is poised to break a support at $ 1,075 per ounce and then fall into a range of $ 1,056-$ 1,066, as its consolidation within a wedge is ending.
The 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.
This barrier has triggered the consolidation within the wedge, which has been contracting to a point. This is a typical continuation pattern, to be followed by another round of drop towards $ 1,056, the 214.6 percent level.
Resistance is at $ 1,092, the 161.8 percent level, a break above which could lead to a gain to $ 1,101, the 150 percent level.
