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Gold breakdown points towards further downside
Gold managed to break from a multi-month range this week, with the price consolidating overnight. This is likely to be a precursor to further downside, with a bearish short-term view in place unless we see a rally through yesterday’s high of $1297.
There is a distinct possibility that this period of weakness is a wide retracement, and thus a break below the 61.8% ($1286) level would point towards a break towards the 76.4% retracement at $1267.
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