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Gold breaks into crucial resistance confluence
Gold gained sharply yesterday, as investors went running for cover in the wake of a widespread risk-off move. While the price has broken higher from a symmetrical triangle this morning, it has since pushed into a major roadblock.
The confluence of a descending trendline and the 76.4% Fibonacci retracement provide us with a key hurdle that must be overcome if we are going to carry this rally onwards. As such, an hourly close above $1250 would resume the bullish outlook, whereas an hourly close below $1243 would point towards a period of weakness.