Sharp sell-off in gold brings us back to key support
Gold dropped sharply yesterday, with the price moving back into the initial swing low of $1275. This is accompanied by the wider 76.4% retracement, and as such we have greater importance attached to that region.
With that in mind, there is a good chance we could see the price move higher from here, where a break back below $1275 would be a warning sign that this recent bullish reversal may be coming undone. Ultimately, we would need to see a break below $1270 to add greater confidence that this is the case. Until then, a bullish push higher is still a strong possibility.