Resistance was provided by the 23.6 percent Fibonacci retracement on the fall from the July 10 high of $1,345 to the Oct. 6 low of $1,183.46. Gold is advancing towards the next resistance at $1,245, the 38.2 percent retracement, a break above which could open the way towards $1,264, the 50 percent retracement.
A correction from the current level may be limited to $1,230.
** 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.