According to Scotia Bank daily report 21 – June, 2013, the precious metal had declined suddenly after investors starts to understand the Fed announcement and they became aware by the end of economic problems in USA. The PMI index and labor data market came worse than expected plus the home sales data in USA, send a conflicting message to market the yellow metal opened yesterday trading session at $1304.75 then moved to $1307 USD/ Ounce and ended the trading session at $1286.50 USD/ Ounce.
According to Scotia Bank technical look on the market. The precious metal continued to decline and ran below the area of support at $1321 USD/ Ounce of gold, closed at $1286 USD/ Ounce. This sudden move indicates that we are in the correction wave C, which is equal to 161.18% comparing to wave A. The next target for wave C is $1155 to 1156 USD/ Ounce. According to Scotia bank this level is a long term support level at Fibonacci because it is by 61.8% is the rebound level. The downside target will be at $1155 to 1156 USD/ Ounce. In the near future, we should have a support at $1265 USD/ Ounce, which was a previous level at June, 2010.