Spot gold may edge up to $1,200
SINGAPORE: Spot gold may break a resistance at $1,195 per ounce and edge up to the next resistance at $1,200, as it has temporarily bottomed around a support at $1,182.
These resistances are identified as the 38.2 percent and the 23.6 percent projection levels of a downward wave C from $1,208.23.
It seems that gold is sandwiched between two trendlines that are contracting towards a point. After failing to break the lower trendline, it has been bouncing towards the upper trendline.
It must be noted that the wave C is far from complete. It is capable of travelling to $1,174. As a result, bulls are advised not to take much fancy on the current rise. A break below $1,187 could confirm the continuation of the wave C towards $1,174.