Spot gold may end its bounce around a resistance at $1,291 per ounce and then retest a support at $1,267.

The resistance and the support are identified as the 50 percent and the 86.4 percent projection levels of a downward wave C from $1,324.33.

The bounce from the April 23 low of $1,265 could have taken the shape of a flat pattern, which consists of three waves that are roughly equal in length. A break below $1,274 could signal the continuation of the wave C towards $1,258.

On the daily chart, gold is expected to complete its consolidation in the narrow range of $1,264-$1,283 very soon. A break above a falling trendline resistance around $1,290 could lead to a gain to $1,307.

(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 analysis.)