SINGAPORE: Spot gold is expected to rise to $1,235 per ounce as it has cleared a resistance at $1,218. The resistance was at the 23.6 percent Fibonacci retracement on the fall from the Jan. 22 high of $1,306.20 to the Feb. 24 low of $1,190.91. The next resistance will be at $1,235, the 38.2 percent retracement.

An inverted head-and-shoulder has been confirmed, pointing $1,249, the 50 percent retracement. However, the resistance at $1,235 may temporarily stop the current rebound and probably trigger a moderate correction.

A drop below $1,218 may not necessarily mean the break above $1,218 was false.

Copyright Reuters, 2015