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A weaker dollar and increased risk aversion have done wonders for gold, which has enjoyed a nearly straight line move since 3 June. A close above $1305 today would ignite fresh bullish momentum, with the next area to watch being $1350.
If the forward movement fails and the price falls back below $1300 we could see a rapid drop in the direction of $1280 and then the 50-day simple moving average at $1254.