The short-term uptrend from this low has been reversed more than 76.4 percent, as indicated by a Fibonacci retracement analysis. Chances are high that the trend will eventually be totally reversed.
Gold is riding on a downward wave c, the third wave of a three-wave cycle that started at the Oct. 21 high of $1,255.20. A Fibonacci projection analysis reveals that this wave has almost travelled to $1,194, its 123.6 percent level. It is highly likely that the wave c will extend to $1,182, the 161.8 percent level, slightly below $1,183.46.
The 86.4 percent level at $1,207 will work as a limit to the rebound from the Oct. 30 low of $1,195.70.
** 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.