Spot gold to fall further to $1,490/oz: Analyst

Spot gold will correct further to USD 1,490 per ounce, as indicated by a Fibonacci retracement analysis.

The metal could have completed a short-term uptrend and has moved into a consolidation phase, as the fall from Monday's high at USD 1,518.10 is deeper than any other corrections on the part of the rally from the April 12 low of USD 1,443.49.

A Fibonacci retracement analysis on the rally reveals an immediate target at USD 1,490, the 38.2% level, and a fall below which will extend to USD 1,481, the 50% level.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **