Gold at the 76.4% Fibo

Among the Fibonacci retracement levels, the 76.4% is the one that has the highest probability of acting as a support or resistance. On the daily chart of gold we can see that the price of the precious metal has made an excellent bullish bounce from the 1307 zone and the 55 day EMA. The price has now reached the 76.4% Fibonacci retracement and it is not unusual to see the price stalling at this zone. In case of a bearish bounce, the price of gold could fall to the 55 day EMA again or the 1300 level could also act as a support. To the upside, in case the price continues rallying, the high at the 1366 level could act as resistance. That is in the technical side, but on the fundamental views, the Dollar must continue falling in order for gold to keep rising. In case the Dollar strengthens again versus its main counterparts, gold could pull back to the downside.