The zone was formed by two resistances, at the 61.8 percent Fibonacci retracement on the fall from the Aug. 28 high of $1,433.31 to the Dec. 31 low of $1,184.50, and at the 61.8 percent Fibonacci projection level of an upward wave C that started at $1,184.50.
This wave seems to be unfolding towards the 76.4 percent projection level of $1,377. Before gold rises further, it may pull back to $1,341 moderately. Only a deeper drop below $1,338 could signal a false break above the resistance zone.
The views expressed are his own.
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