Fibonacci Support Defines Next Downside Zone

If gold breaks below $4,066, the next lower potential support area is defined by the 88.6% Fibonacci retracement of the prior advance at $4,028. Gold found support near both the 61.8% and 78.6% Fibonacci retracement levels during the correction, making the 88.6% level a potentially significant area for another reaction. It is reinforced by the summer trading range, which provides a broader support zone extending toward its low of $3,942. A break below $4,066 would expose this next retracement target, while a sustained recovery from the current levels would be needed to challenge the prevailing bearish pressure.