The support is at the 61.8 percent Fibonacci retracement on the rise from the June 2 low of $1,240.69 to the July 10 high of $1,345. A pullback towards this former support could have completed and gold is poised to fall towards the next support at $1,265, the 76.4 percent level.
Strategically, the target will be confirmed when gold falls below $1,273. A rise to $1,284 will signal the break below the support at $1,281 was false, and a rebound target will be established at $1,293, the 50 percent retracement.
The views expressed are his own.
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