The zone has been formed by the 76.4 percent Fibonacci retracement on the fall from $1,433.31 to the Dec. 31, 2013 low of $1,184.50 and the 76.4 percent Fibonacci projection level of an upward wave C.
Gold's quick slide below $1,374 simply signals a false break above the zone.
Immediate support will be at $1,341, the 61.8 percent projection level, a break below which could even lead to a further loss to $1,311, the 50 percent level.
The views expressed are his own.
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