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Gold attempts to break through key support area
The commodity has been trading in a largely sideways manner over the past 48 hours, with yesterday’s temporary break through $1277.7 failing to hold.
This morning we are seeing another attempt to break through an important support level, with the 50-hour simple moving average (SMA), trendline and horizontal support at $1282.
This is an area where we could get some form of response and with that in mind, a bullish bounce is a strong possibility here. Ultimately, we would need to see an hourly close below $1276 to negate the current bullish view.