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Gold bulls face their Waterloo
The gold bulls tried valiantly, but a strengthening US dollar has seen the commodity hit hard once again. It is now testing the post-December 2015 rising trendline, as it did at the beginning of July.
If it closes below this, and then falls below horizontal support at $1236, then $1213 and $1204 will come into play as possible targets. A rally now will have to fight its way back above $1248 and then the high of the week at $1265 to suggest a broader rebound is in play.