61.8% Fibo retracement on gold

Gold fell from the 1300 level to the 1200 level and then it started retracing to the upside after the Dollar started falling. Gold and the Dollar have a negative correlation, that is why when the Dollar falls, gold rallies or vice versa. Gold retraces to the 61.8% Fibonacci Retracement of the fall from the 1300 to the 1200 level. Usually, the 61.8% Fibo acts a resistance or support area, in this case the level may act as a resistance and gold may stall its rally here or even bounce to the downside. In case the price of gold bounces to the downside, then it may try to go and visit the 38.2% Fibo, around the 1239 level. On the other hand, gold may break above the 61.8% Fibo and try to go and visit the 76.4% Fibo around the 1278 level, which could act as a better resistance.