Gold rally proves short-lived
Gold spiked higher yesterday, with a rebound into the 61.8% region. However, this looks to have been swiftly negated with price breaking back into the key support level of $1259.
That support zone will be crucial going forward as it represents a head and shoulders neckline. As such, watch out for a strong break of $1259 as a precursor to further losses. Conversely, we would need to break back through $1281 to become bullish once more.