The gold extended its steady retreat from highs of several years and now has dropped to the lower end of its range daily trading around the 61.8% level of Fibonacci from rising from lows of night swing. The overbought conditions in the daily chart seemed to have caused aggressive long-term trade amidst a radical change in the day-to-day feeling of global risk.
Some tracking weakness below the $ 1572 level could now be seen as a key trigger for bearish traders and put additional downward pressure on the back of the demand for safe shelter. Gold could then accelerate the corrective fall to the $ 1564 strong horizontal zone test before finally falling to its next main support near the $ 1557 region.
On the other hand, the $1580-82 region (50% Fibonacci level) now seems to act as an immediate resistance, above which the bulls are likely to aim to claim the mark of the $ 1600 round figure. Prior to the aforementioned level (about 23.6% Fibonacci), intermediate resistance levels are linked near the $ 1589 area (38.2% of Fibo) and the $ 1594 region.