Range Markets

The yellow metal was stable against the US Dollar on Friday morning, as it was supported by the 55-hour SMA and the 38.20% Fibo retracement. It managed to pick up speed mid-session and even breach the 200-hour SMA early today. This two-day period of appreciation has sent the pair close to the 1,330.00 mark where the upper boundary of a three-week channel and the monthly PP are located.

Technical indicators are in favour of strong bearish momentum, although some upside potential still could be possible within the following trading hours. A possible point of reversal could be the aforementioned 1,330.00 mark or the 23.60% Fibo at 1,335.60.

In terms of support, Gold should not move below the 55– and 100-hour SMAs near 1,318.00.


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