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Gold selloff pauses
Friday saw an end to last week’s bounce from long-term trendline support. This selloff brings us closer to the $1064 low, which if broken could lead to significant losses. However, for now prices seem to be drifting higher, which looks like a brief respite in the selling.
Thus in line with the downtrend seen in both long-term and now short-term charts, it seems likely that this morning’s upside is a short-term phenomenon preceding another leg lower towards $1064.
Resistance levels to watch are at $1077 and $1079. The $1079 mark would need to be broken for a more bullish picture to emerge.