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The price of gold has continued its downward spiral, weighed down by a lack of physical demand and the recent strengthening of the dollar, which has come off the back of hopes for a resolution to the US budget issue.
As indicated on the chart below, the price of the commodity has been trading in a bearish channel.
Also worth noting is that a key support level at $1270 has been reached and the next signficant level at $1200 is within range.
Seasonal physical demand in China and India, expected towards the end of the year, is a potential catalyst for a reversal of the trend currently in place.