Thursday, 12 November 2015 13:48
SINGAPORE: Spot gold is due for a decent bounce which may occur above the July 24 low of $ 1,077, as indicated by the hourly RSI.
A bullish divergence has formed on the hourly RSI, indicating gold has become technically strongest after the successive falls over the past two weeks.
Even though the metal has broken a support at $ 1,092, the 86.4 percent Fibonacci retracement on the rise from $ 1,077 to the Oct. 15 high of $ 1,190.63, its fall could be limited to $ 1,077.
A break above $ 1,092 could signal the progress of the bounce towards the immediate target at $ 1,104, the 76.4 percent level. The next target will be $ 1,120, the 61.8 percent level.
