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Gold consolidating after downturn
Gold sold-off sharply on Friday following the strong payrolls number. The break below $1349 pointed towards a wider deterioration, with the 76.4% retracement at $1324 of particular interest for longs to come back in once more.
However, for now we are seeing price consolidate with support and resistance clearly defined at $1330-1338. Given the substantial bearish implications of breaking below the cluster of support between $1303-1311, it seems likely that the bulls will come back into play once more before we get to that level.
As such, should we see an hourly close below $1330, it would look like a deeper retracement towards $1324 would be likely. However, whether that happens or not relies on the breakout from this range and as such, the outlook will be driven by a move from this period of consolidation.