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Gold’s selloff brings bearish flag formation
The substantial sell off yesterday took back much of the gains in the middle of last week. With price consolidating, there is a high likeliness that we are going to bounce up, simply due to the fact that the current trend is towards higher highs and lows. However, with the current consolidation forming a flag rather than a more substantial bounce higher, there are also warning signs that further losses could be around the corner.
As such, I will await a break from this formation, with a break lower likely to point towards a move to $1178. Otherwise a move towards the upside could bring another major leg higher with initial resistance at $1192 for gold.