I have read that duende can mean both a mythical creature or, metaphorically, a kind of magical sensation to something. What exactly does duende refer to in both senses? How would both of these senses be best translated to English?
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As you said, Duende has two basic meanings:
Over all, it's a very complex word, it has a lot of history, and can be used in several sentences, and mean something different in each one, but it's always something special.