Gold breaking lower after recent gains
Gold has negated its recent recovery, with the price falling back below the $1273 mark to complete a lower high and lower low. With the price subsequently falling back below $1272, it looks like we could be heading back to trendline support once more. The key to whether this is a wider pullback before we move higher, or a beginning of a wider move lower is whether we break below $1265.
For now, the price seems to have respected the 76.4% retracement. However, should we see a break back below $1265, then the price of gold would look susceptible to significant further downside.