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Gold retests $1178 following brief foray below the major support level
Gold’s move below $1178 was short-lived, with Wednesday’s trading seeing that level taken back in a strong move higher. However, we have now returned to that same level and the crucial issue is whether it will hold. With that in mind, I am hoping for a bounce higher towards $1193 and $1200.
However, a move below $1178 would likely bring a swift move towards $1163 and most probably lower. With that in mind, I see the current price level as a good opportunity given the fact that any bullish sentiment can quite easily be wiped out with a move below the $1178 area. With trendline support also coming into play around that area, I do expect a bounce higher.