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Gold trendline holds once more
Yesterday’s blockbuster post-European Central Bank moves saw gold initially tumble back to trendline support, only to rally sharply to a new one-year high soon after. This brings back a renewed bullish sentiment and thus the current pullback seems likely to give way to further gains soon.
Notable support levels to watch would be $1263, $1260 and $1255. Thus while we could see further short-term losses, a move back towards yesterday’s high of $1284 seems likely soon.