Gold breaks the 200 day EMA to the downside

Gold has kept a very good bearish trend since it started retracing to the downside from the high at the 1295 level, very close to the 1300 zone. The price of gold breaks below the 200 week EMA at the 1256 level and from there the bearish momentum accelerates even more to take the precious metal below the 200 day EMA at the 1239 level. The drop has been so strong that the price of gold has broken during today´s session below the 61.8% Fibonacci retracement of the rally from the low at the 1200 zone to the high at the 1300 zone. From this point on, gold may continue falling and it is possible for it to go and visit the 76.4% Fibo at the 1218 level. Below the 76.4% Fibo, its next important support is at the 1200 zone. Since the commodity is clearly over-extended to the downside, there could be a bullish pullback, maybe towards the 200 day EMA, but the 200 week EMA at the 1256 level, which coincides with the 38.2% Fibo may act as a better resistance.