The resistance is provided by the 38.2 percent Fibonacci retracement on the fall from the March 17 high of $1,391.76 to the June 3 low of $1,241. It has become a target simply because gold broke above a former resistance at $1,276, the 23.6 percent retracement.
A fall below $1,276 will be considered as a pullback towards a trendline descending from $1,392. Only a deeper drop to $1,268 could signal a completion of the rebound from $1,240.61.
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.