By: Shoaib-ur-Rehman Siddiqui | Monday, 07 October 2013

SINGAPORE: Spot gold is due for a sharp move, as its consolidation in a narrow range of $1,301.81-$1,323.21 could be ending.

The consolidation seems to be taking the shape of a triangle, the two trendlines of which are converging to a point. The pattern will be confirmed bullish should gold climb above $1,323.21, with an immediate target at $1,346.61.

A drop below $1,301.81 will confirm a small double-top that formed between Oct. 2 and Oct. 4, and a bearish target at $1,278 will be established.

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.