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Friday’s bounce has yet to be unwound, so while we may see a further test of $1300, as long as the price holds above here, ongoing concerns about the global economic outlook may continue to drive the price higher.
A further rally would need to take out $1347, and then push on towards the 2014 high at $1389. A move back below $1300 would risk a rerun of the losses seen last week, with a possible dip back to the 50-day simple moving average (SMA) at $126 for gold.