SINGAPORE: Spot gold may retest support at $1,082 per ounce, as indicated by its wave pattern, a Fibonacci projection analysis and a wedge.
Support is provided by the 176.4 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle that developed from the May 18 high of $1,232.20.
This barrier has caused a consolidation within a wedge, the upper trendline of which has established a resistance around $1,101, the 150 percent projection level. This wedge could be a bearish continuation pattern, to be followed by another round of drop.
A break above $1,101 could lead to a gain into a range of $1,109-$1,119, formed by the 138.2 percent and the 123.6 percent levels.