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?
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.