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Gold drops lower
Gold continues to grind lower, with the 20-period simple moving average providing clear near-term resistance. Given the clear downtrend in play throughout the past month, further downside seems likely, driven in large part by US dollar strength and December rate hike expectations.
However, the key to gold going forward is going to be the $1077 level, which if broken would create a new five-year low. For now, gold looks bearish unless price moves back above $1096, which would then look towards $1098 and $1105 resistance.
However, downside is expected following the doji candle this morning, with the July low of $1077 the next major support level.