Gold pricing recovered today after trading to a low yesterday of approximately $1886.90. That price point corresponds to a critical Fibonacci retracement level of 61.8%.

Inflationary rates have been rising dramatically over the last year. We have seen both the CPI and PCE inflation index increasing each month since October last year.

Ever since gold hit a high of $2078 on March 3 traders and investors, viewing the market as overbought reacted by selling the precious yellow metal taking it lower.