Daily Gold Update

Source: Bloomberg

Mumbai— Gold, which remains in a so-called bull trend, has been building support within a trading range and the price may advance to an all-time high, according to a technical analysis by Barclays Capital. �We are bullish for gold and look for support to build� at $1,340 to $1,350 per ounce, where the 100-day average meets a Fibonacci retracement, Barclays analysts wrote in a Jan. 14 report. The spot price, which touched a record $1,431.25 on Dec. 7, was at $1,364.63 per ounce at 12:43 p.m. in Singapore today. Breaking so-called resistance in the $1,400-per-ounce area may lead to a rally to the $1,432-per-ounce high, with an initial target zone of $1,460 to $1,480, the report said. The medium-term target was $1,460 to $1,485 an ounce, it said.

Fibonacci analysis is based on the theory that prices tend to climb or decline by certain percentages after reaching a high or low. A resistance level is a price where there is expected to be a cluster of sell orders. Immediate-delivery gold rallied 30 percent last year for a 10th annual gain as investors sought a haven from financial turmoil in Europe and weakening currencies. The spot price settled at $1,361.72 on Jan. 14, the lowest close since Nov. 19. See full story.