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Gold rallies into 61.8% retracement
Gold continued its ascent yesterday, following a pullback into the 61.8% ($1244) level. This brings us into a wider 61.8% ($1261) retracement of the $1296-$1205 sell-off.Given the expectation of further downside, there is a chance we could see the price of gold under pressure around the 61.8% ($1261) or 76.4% ($1274) retracements.
Considering the sharp move higher yesterday, there is a chance we could start to weaken from here anyway. However, it would take a break back below yesterday’s low of $1244 to provide the signal that recent gains are set to be reversed.