By Nicholas Larkin March 3 (Bloomberg) -- Gold, trading near a six-week high, may climb toward $1,162 an ounce should prices hold above $1,135, according to technical analysis by Commerzbank AG. The attached chart shows gold is near a three-month resistance line, its February highs and a 50 percent retracement of its slide since December. The second chart shows bullion may climb to $1,150-$1,162 if prices hold above $1,135. The $1,150 level would be near a 61.8 percent retracement of the metal’s drop since December, according to a series of numbers known as the Fibonacci sequence, while $1,162 would equal the January high. Gold reached $1,138.50 today, the highest price since Jan. 20, and traded at $1,136.45 at 10:44 a.m. in London. The metal is up 3.6 percent this year. “The fact that last week’s correctly anticipated fall only took the gold price to $1,088 before giving way to another leg up shows underlying strength,” Axel Rudolph, a technical strategist in London, said in the report. “This is why we will become short-term bullish if, and only if, the $1,135.50, 50 percent Fibonacci retracement is overcome.” In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net.

Source