Gold closed lower due to short covering on Friday as it consolidated some of the decline off December's high. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are turning bearish signalling that additional weakness is possible near-term. If it extends this week's decline, the 38% retracement level of the 2008-2009-rally crossing is the next downside target. Multiple closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.
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