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Gold rallies into Fibonacci resistance
Yesterday’s sharp move lower for gold brought the price close to a major ascending trendline of support. We have since seen a strong move higher overnight, with the price moving back into the 76.4% retracement level. This brings us to a crossroads, where there is a possibility of another move lower to fully reach trendline support.
However, given that we saw the market move close to that trendline, there is a chance we could see a recovery from here. As such, watch out for potential short-term intraday bearish reversal signs to suggest the potential for another move lower. On the flip side, a break through $1259 would give us a good clue that this market has bottomed out.