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The catalyst for gold’s fall today looks to have been created by the monthly US core CPI figures which came in stronger than expected, as well as the encouraging drop in US unemployment claims, both of which point towards an improving economic picture from the US. The standout figure has come from the US Empire State manufacturing index, however, which has hit levels not seen since May 2012.
Over the last month, the latest reports about Ukraine have gone a long way towards dictating the gold price. As things have deteriorated, market fears have increased, and fresh buying of the precious metal has ensued. The longer that this continued the less reactive markets have been.
I remain of the opinion that, as long as the gold price remains above $1280 then we will see a fresh test of the top end of the range around $1330. Only a close above here would open up the possibility of further gains.