Gold finds dip buyers - for nowGold / U.S. DollarFOREXCOM:XAUUSDFOREXcomOn an intraday basis we have seen a couple of recovery attempts on gold with the metal finding some support near $3,900. The path of least resistance is still to the downside so long as the shaded region around $4K holds as resistance. For a metal that pays no interest, the prospect of higher rates raises the opportunity cost of holding it. The Fed is expected to hike again in December, barring a collapse in oil prices and a deal between the US and Iran. An insurance rate hike is i building elsewhere too, with the Bank of England expected to raise rates to 4% on Thursday. We have also seen stronger than expected US data so far this week. Friday's US non-farm payrolls report should be particularly important. A strong employment reading would reinforce expectations for another Fed hike and could put further pressure on gold through higher yields and a firmer dollar. A softer number would probably ease some of that pressure, but will it be enough on its own to lift gold back above the broken $4K area? Gold needs a recovery back above the shaded region before things start to look a lot better. On the downside, there is not much in the way of obvious levels apart from round handles such as 3,800 and then 3,700. Fibonacci extensions from the June low to the August peak will be used for additional downside targets should the selling accelerate. The 127.2% extension comes in at around 3,738 and the 161.8% extension at around 3,476. Where is gold's next resistance above 4,000? The next area of resistance comes in between 4,066 and 4,106, where a bearish trend line sits (not drawn on my chart). Gold would need to clear that area to look more constructive. By Fawad Razaqzada, FOREX.com analyst