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Gold pushes lower
Tentative signs of a recovery in gold were obliterated yesterday, with the price dropping through key support at $1264. The next area to watch will be that provided by the 200-day and 50-day simple moving average (SMA) at $1255 and $1249 respectively, where some support may develop, or failing that, down to the rising post-December trendline, which would suggest support around $1241.
Bulls need to see a recovery of $1264 and then a push above $1270 to reverse the sequence of lower highs and lower lows on the hourly chart.