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Gold gains may continue
The overreaction in gold yesterday, which took the price to $1330, brought out the sellers, but for now the price shows little inclination to hold below the 200-day simple moving average (SMA) – $1280. A failure to push on today could see a turn lower that tests $1265, with a close below here opening the way to $1250.
A rally needs to get back above $1295, the 50-day SMA, and then through the key area of $1307, which was resistance last Friday and support in August and September.