Gold price recently touched the 61.8% Fibonacci retracement of the entire decline from $1,876. Price recently made a high at $1,831 and got rejected at the Fibonacci resistance. Price pulled back towards $1,797 and this is now an important low.
Gold price is bouncing back up again and this is in favor of the bulls. Holding above $1,797 is crucial for the short-term trend. Failing to hold above this level, I will expect Gold price to fall even further towards $1,770 and maybe lower. If bulls are unable to break above the recent high and 61.8% retracement, this will lead to the formation of a lower high and the start of a new downward move that will most probably push price below $1,700. That is why it is crucial in the near term to hold $1,797.
