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Gold potential support at $1246 and $1239
Gold’s move back below the downtrend line raises the prospect that we are about to see a fresh leg lower, with the creation of a new lower high putting the post-December 2016 trendline under strain. As potential support levels, we have $1246 followed by $1239.
A bounce from $1260 would suggest a return to the highs of the week near $1275, with the current pullback in the four-hour chart providing an interesting entry point for further longs.