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Gold could see 100-day SMA
Friday’s sharp reversal raises the possibility that we will see a further drop towards $1305 and the support level seen in July. A break below here would see a move to $1280, the 100-day simple moving average (SMA).
Such a dip would still be seen as a possible buying opportunity, as the 2016 rally goes on, with a break above $1380 taking the price on towards $1425 for gold.