Spot gold price to retest support at $1,099
Singapore (Sept 16) Spot gold is expected to retest a support at $1,099 per ounce, with a good chance of breaking below this level and falling further towards the next support at $1,089.
These supports are identified respectively as the 76.4 percent and the 86.4 percent Fibonacci retracements on the uptrend from the July 24 low of $1,077 to the Aug. 21 high of $1,168.40. The bounce caused by the support at $1,099 seems to have ended around a resistance at $1,112, the 61.8 percent level.
A break above the resistance may lead to a gain to $1,123, the 50 percent retracement.