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Gold rally could come unstuck
Gold has rallied into the 76.4% retracement this week, in what looks like another pullback before we turn lower into the recent downtrend.
The key level to watch here is $1223, which is the difference between a bullish and bearish outlook. As long as we remain below that level, it is likely we will turn lower once more. Given the depth of this pullback, any shorts from here would provide a good risk-to-reward profile.