SINGAPORE: Spot gold has found a support at $1,211 per ounce and may hover above this level for a trading session or rebound moderately to $1,219, before falling towards $1,200.
The support is identified as the 61.8 percent Fibonacci retracement on the rise from the Oct. 6 low of $1,183.46 to the Oct. 21 high of $1,255.20, temporarily blocking the way towards the 76.4 percent level at $1,200.
A moderate rebound has been triggered, which could most likely be limited to the 50 percent retracement at $1,219, now a resistance. A drop to $1,208 will confirm both a break below $1,211 and the target at $1,200.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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