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Gold challenging critical support level
Gold has managed to break lower from a rising wedge formation, with the price now challenging the crucial $1228 support level this morning. A break below that level would point towards further downside coming into play.
Interestingly, with the 61.8% retracement of the wider move ($1218-1243) coinciding with that $1228 swing low, there is a strong chance of a rebound from here. While it would provide us with flatlining lows on the shorter-term intraday trend, it would also represent a wider retracement without actually needing to break from this shorter trend. Should we break below there, the 76.4% retracement ($1224) would be the next key support level. However, ultimately, we would need to see a break below $1218 to negate the uptrend in play throughout October.
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