Following a minor period of consolidation during the first half of Tuesday, the bearish sentiment prevailed in the market and thus sent Gold down to the 1,332.00 area. Subsequently, the rate returned for a re-test of its four-month high of 1.344.03, but fell lower once again.
These increasing fluctuations demonstrate that Dollar bulls might have finally increased in strength. However, no massive declines are expected today, as the pair should still be tended slightly upwards. At the time of the analysis, Gold was constrained by the 55– and 100-hour SMAs. Technical indicators suggest that the southern barrier should hold strong.
Meanwhile, the nearest upside target is the aforementioned 1.344.03 mark, while the ultimate upside target for today should be the weekly R1 at 1,348.83.