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Gold downtrend runs into crucial Fibonacci support
Gold is selling off once more this morning, in a continuation of the downtrend seen since topping off at trendline resistance last month. However, with 2017 having exhibited a wider uptrend thus far, we would need to break below the $1240 swing low to negate the view that we could turn higher before long.
With that in mind, it is notable that we are currently trading around the 76.4% retracement. There is also reason to believe we could turn higher from here. However, for greater confirmation of a bullish reversal, we would need an hourly close above this morning’s swing higher of $1257. Until then, the short-term downtrend remains intact.