While equities have stumbled out of the gate to begin 2016 gold has started the year with a bang, rising by more than 5%. The next big challenge for gold is the 38.2% Fibonacci retracement of the January-December 2015 decline and the downtrend line drawn of the January and October 2015 peaks:
Gold (Daily)
$1146 is the next big level for gold in US dollar terms
$1146 is not only a key Fibonacci level, it is also an area where gold found support in March 2015 after a steep $160+ decline. The previous breakout level ($1110) now becomes support and in fact turned out to be the exact low during this morning’s pullback.