Spot gold price to seek support in $1,090-$1,096 range
Singapore (Jan 8) Spot gold may seek a support in a range of $1,090-$1,096 per ounce, before rising again.
The range is formed by the 100 percent and the 114.6 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the Dec. 3, 2015 low of $1,045.85.
This low, along with the Dec. 17 low of $1,047.25, has formed a double-bottom which suggests a target at $1,133, the 200 percent projection level. As a result, the current correction could be shallow, limited to $1,090.
A break above the resistance at $1,112 could confirm the continuation of the wave C towards the range of $1,117-$1,123, formed by the 161.8 percent and the 176.4 percent levels.