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Gold breaks lower from triangle
Gold finally broke out of the triangle formation on Friday, with price moving in a countertrend manner to push below the key $1333 swing low. Price has essentially rotated around that area since, with a clear degree of hesitancy for the next move. With the stochastic clearly oversold, there is a chance we will see a move higher from here.
However, even if that does occur, Friday’s move provides a more bearish picture for now. Price is trading within a small symmetrical triangle pattern and as such, we are likely to gain a directional bias from the breakout.