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Our idea at the beginning of the week was premised on the big about-turn from President Obama on Sunday and the view that the congressional vote could struggle to pass to vote on a potential military strike.
With the President now receiving the backing of US House Speaker, John Boehner and Eric Cantor (the number two House Republican), it seems with these congressional heavyweights behind him, the balance of probability around military action has increased. We were looking placing stops above the August 28 high; given the surprising proceedings in the last twenty four hours we would not be surprised if this is hit in the near term.
For gold to fall again we will need to see a continuation of solid US data and a number of Republicans to vocally say they are against military action.