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Gold consolidates around critical support level
Gold rallied back into the $1229 resistance level overnight, with the market clearly taking a breather following a strong move lower into an absolutely critical area of support. This level is important as a break below $1214 would provide a completed double top formation on the daily chart. As such, we are looking for either a breakdown through that level to provide a renewed bearish signal, or else a rebound from support.
An hourly close above $1229 would point towards some form of retracement at least, with a break through $1255 needed to provide a more medium term bullish view. To the downside, we would need a four-hour close below $1214 to signal the likely beginning of another period of weakness for gold.
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