We have seen a strong rally in gold in 2016, but lately the precious metal has been under pressure. Saxo Bank's head of commodity strategy Ole Hansen says that $1,300-1,310/oz is now a key level of support.

Hansen mentions that the dollar is the key driver for the price of gold and he points to the charts to find future levels.

Hansen says that we have seen several examples of the 38.2% Fibonacci retracement level working in the past, and that's why he believes that $1,250/oz could be the low during this correction.