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Having moved higher by leaps and bounds, the question is now whether gold is about to close above $1350, or whether the combination of overbought intraday charts and extremely bullish positioning will lead to a swift reversal.
The metal is in an uptrend, so the approach here would be to buy the dips as and when they appear. It is important to note that the steepness of the move since the beginning of June means that we could see a drop back to just below $1280 and still be in an uptrend. A close above $1350 targets the March 2015 highs around $1385.