Gold Fibonacci Signaling Rebound From September Slump: Technical Analysis

Gold, heading to biggest monthly decline since 2008, may rally 8.2 percent by the end of this year, according to technical analysis by Paul Kavanaugh, a senior analyst and broker at PFGBest.

The precious metal may rise to $1,750 an ounce, based on Fibonacci analysis, Kavanaugh said yesterday in a telephone interview from Chicago. After plunging as much as 20 percent from a record $1,923.70 on Sept. 6, gold has climbed above the 50 percent resistance level of $1,541.50 and will have to top $1,631.70 before reaching the target price, he said.

“This correction was needed and was healthy, but gold is now poised to climb up,” said Kavanaugh, who used technical analysis in early July to correctly predict that cotton would slump below $1 a pound. “If you liked it at $1,900, you have to love it at $1,600.”    Read More

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