gold price

Aticle on Bloomberg

Feb. 18 (Bloomberg) -- Gold may climb to about $1,400 an ounce in the next 12 months, according to technical analysis by Chartered Market Technician Daniel Bruno, who advises banks and hedge funds.

The attached chart shows gold is trading above a trend line that starts from the metals low in January last year. A climb to $1,419 an ounce would equate to a 150 percent projection of bullions rally from January 2009 to its record in December, according to a series of numbers known as the Fibonacci sequence.

Gold remains robust above its rising trend line, and the recent rebound from a three-month low on Feb. 5 is a bullish signal, Bruno said in an interview. We project about $1,400 within 12 months as long as the $1,000 level holds, he said.

Gold reached a record $1,226.56 an ounce in London on Dec. 3 and is up 0.6 percent this year. The metal climbed 24 percent in 2009, a ninth consecutive gain, as near-zero U.S. interest rates and government spending weighed on the dollar and countries including India and China boosted gold reserves. The metal traded at $1,103.85 an ounce at 6:03 a.m. in London.

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.