The resistance has been identified as the 61.8 percent Fibonacci retracement on the fall from the April 14 high of $1,330.90 to the April 24 low of $1,268.24.

It is strengthened by another one provided by the trendline descending from the March 17 high of $1,391.76. These two resistances will work together to force gold to retrace to $1,292, the 38.2 percent retracement.

A break above $1,307 may trigger a gain to $1,316, the 76.4 percent retracement, but this gain is likely to be reversed by a pullback towards the trendline.

The views expressed are his own.

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 analyses.