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Gold tracking trendline after decline below key support
Gold managed to break below the $1320 support level yesterday, providing greater confidence that we will return to the lower half of the multi-month range in place for gold.
For the time being, the price is tracking a descending trendline, which forms the lower boundary of a falling wedge pattern. This points towards a potential wider retracement coming into play before long. However, until we break above the $1326 level to signal the beginning of that retracement, another leg lower towards the crucial $1306 level looks likely before long.