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Gold continues to retrace lower
Gold has continued its decline, following a breakdown from the ascending channel seen throughout the past week. The key here is that this pullback is perceived as a retracement rather than a reversal, as long as we do not break below the $1260 mark.
As such, the Fibonacci support levels will play an important role as potential reversal areas. With the price having broken below the 50% level, watch out for the 61.8% ($1278) and 76.4% ($1271) pullbacks. A bullish view is thus in play unless we move below $1260.