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Gold breaks below 76.4% retracement
Gold has continued its decline, with the overnight break below the 76.4% Fibonacci support level raising significant doubts over its ability to rebound out of this downtrend.
The wider picture for gold has been one of higher lows since the December 2015 low of $1046. This latest break below the deepest Fibonacci retracement level points towards a heightened possibility that we will break below the crucial $1236 level to bring a long/medium-term bearish view. For now, as long as the price remains below that $1267 mark, there is a heightened chance of further losses in line with the recent short-term downtrend.