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Gold approaching key support level
Gold reversed into a 76.4% retracement yesterday, following on from a sharp rally into $1341 resistance on Tuesday.
The inability to break above $1341 holds a more uncertain tone, with a break below $1317 or above $1341 providing greater certainty on market direction. However, for the near-term it makes sense to look for whether the price can break below the $1322 low. Should that occur, it would necessitate a break below trendline and Fibonacci support, pointing towards a possible bearish reversal for gold.