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Gold weakening from Fibonacci resistance
Gold has shown some initial signs of weakness from the crucial 76.4% retracement this week, with yesterday’s rally into the $1274 mark being met by initial selling. The short-term picture has not yet shown any bearish reversal signals, but with the longer-term view highlighting the potential for a bearish reversal, it makes sense to be bearish unless we manage to break up through the $1296 mark.
Watch out for trendline and simple moving average (SMA) support to the downside, where a break below those levels and $1262 mark would provide a greater confidence of downside.