Tuesday, 18 August 2015 10:58
,109″ alt=”Spot gold to test support at ,109″ width=”400″ height=”333″ src=”https://globalrubbermarkets.com/wp-content/uploads/2021/09/gold-slips-on-firm-dollar-eyes-on-ecb-us-data.jpg”>SINGAPORE: Spot gold is expected to test a support at $ 1,109 per ounce, a break below which will lead to a loss to the next support at $ 1,092.
Wave pattern suggests gold is riding on a wave C, the third wave of a three-wave cycle that developed from the Jan. 22 high of $ 1,306.20.
This wave consists of five small waves, and a Fibonacci projection analysis based on the length of the first wave reveals various levels that control the current move.
The 138.2 percent level at $ 1,109 works as a support, temporarily preventing gold from sliding towards the 161.8 percent level at $ 1,092. However, the last wave of the wave C, labeled 5, has started, and is expected to travel to $ 1,082, the 176.4 percent level.
A break above $ 1,125, the 114.6 percent level, could lead to a limited gain to $ 1,136, the 100 percent level.
