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Potential head and shoulders pattern for gold
Gold has been consolidating on the back of the attempting rally through the crucial $1296 resistance level. That could prove a fake out, with a break below $1280 likely to spark further downside.
That level represents the neckline of a head and shoulders formation. However, for a more bearish view to come into play with greater confidence, we would need to see a move back below the $1267 mark. Until then, the bullish near-term trend remains in play.