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Gold rally now turns into a rout

The further falls in gold today has now completely unwound the gains seen during the Asian session, when the metal charged to a new all time high, at 2,135.39. It has now fallen back by more than $110 from that earlier record high. In the process of doing that it has taken out yet another technical support level, at 2,033.56. The low seen so far has been set at 2,020.20 and it may not be done with yet. The point about all this, is the rally to a new all time high has now turned into something of a rout and there is damage out there for sure. The next, even more interesting support level to note is now at 2,009.53. Coincidentally, that Fibonacci level comes in just a fraction ahead of the original wave 1 top,  at 2,009.41 and that makes it a very important level from a technical perspective, given this massive turnaround. The price point at 2,009.53 represents a 61.8% correction of the 1,931.74 to 2,135.39 move. Gold is currently trading at 2,025.50 

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